Since August 24, it is possible for citizens of Mendoza, a province of Argentina, to pay their taxes in crypto. The decision was announced by the tax authorities of the province. They hope to continue the modernization and digitization of the tax administration in their entity. This major step forward comes as initiatives calling for the adoption of cryptos are multiplying in the country hit hard by inflation.
Crypto, a more convenient and transparent way to pay taxes in Mendoza
Cryptocurrencies are being fought hard by some states. Others, on the other hand, are not stopping themselves from taking advantage of multiple benefits that digital assets offer. This is notably the case of the Argentine province of Mendoza. Indeed, since August 24, 2022, the province’s tax authorities have announced the possibility for taxpayers to meet their tax obligations using cryptocurrency.
This is one more door to make it easier for taxpayers to pay their taxes. This is a service offered by the payment processor with which we have integrated new technologies, such as virtual wallets and cryptocurrencies.Nicolás Chávez, Director General of the Tax Administration of Mendoza.
The director of administration also detailed the operation of the device for paying taxes via cryptocurrency. Indeed, the taxpayer wishing to pay his taxes in cryptocurrency will have to connect to a specific payment portal.
The system then sends the taxpayer a QR code to pay the tax with integration of the amount to be paid. After payment, the taxpayer immediately receives a receipt as proof of payment. The system is thus more transparent and free of fraud.
We make sure that from a legal point of view, the payment is guaranteed. When someone performs a transaction with blockchain technology this is the case.Nicolás Chávez, Director General of the Tax Administration of Mendoza.
Crypto adoption accelerates in Argentina
Beyond the payment of taxes by cryptocurrency in the province of Mendoza, initiatives to promote the use of crypto are increasingly numerous in Argentina. The most recent is undoubtedly the partnership between the cryptocurrency exchange Binance and the giant Mastercard. In fact, since August 23, 2022, both companies have launched the Binance card to facilitate payments in cryptocurrencies to nearly 90 million businesses in Argentina.
In Argentina, the continued use of cryptocurrency by both businesses and citizens is not only motivated by the ability of this type of asset to offer security, transparency and low costs in transactions.
Cryptocurrency is much more an alternative to the rampant inflation of the national currency. This is doing the business of big players in the crypto ecosystem like the exchange Binance. Indeed, the Latin American branch of this exchange says it has seen the majority of its new registrants come from Argentina, Brazil and Mexico. What these three Latin American countries have in common is that they have been hit hard by inflation lately.
Now, as we see inflation accelerating around the world, we are seeing more and more people looking to cryptocurrencies, like bitcoin, as a way to protect themselves from inflation.Maximiliano Hinz, CEO of the Latin American branch of Binance
The interest of Argentines and companies in the country for the cryptocurrency is no longer to demonstrate. It is now state entities that are jumping in. This should only strengthen the adoption of cryptocurrencies in the country. Unfortunately, some countries such as Nigeria or India, continue to fight cryptocurrency. An attitude that is as detrimental to the economy of these countries as it is to the citizens themselves. May the case of Argentina inspire them.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.