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Authorities of Mendoza in Argentina have announced plans to allow about two million residents to pay taxes or government fees using Stablecoins, such as Tether (USDT) and Dai (DAI). A spokesman for the authorities explained:
“This new service is part of the strategic objective of modernization and innovation carried out by the Mendoza Tax Administration so that taxpayers have different means to comply with their tax obligations.”
This announcement comes a few months after Argentina’s capital Bruno’s Aires, revealed that it would accept Bitcoin (BTC) as payment for taxes and government fees. The capital began accepting crypto payments after the mayor of the city, Horacio Rodriguez Larreta, explained that it was part of the state’s futuristic plans. The mayor explained at the time:
“The city is not going to have crypto in public accounts, but through an agreement with virtual wallets, we are going to add one more payment option to the ones we already have, with the idea of making things easier.”
Like Mendoza, More Argentine States Expected to Go the Way of Crypto
With ballooning inflation of over 70% year-on-year (YoY), the latest crypto move and possible future moves is a way the tax office could use to tame rising inflation choking the peso.
Interestingly, the President of Argentina, Alberto Fernandez, has said he’s open to the idea of adopting digital currencies as legal tender in the embattled economy. The President made the comment in an interview last year, adding that crypto needed to be handled with care as he lacked the technical knowledge about the asset class. He explained at the time:
“This is a subject that must be treated carefully. In my case, because it is still unknown to me. Some still don’t understand how this money is materialized. These doubts I have are shared by many, that’s why the project has not expanded further.”
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