The province of Cuyo in Argentina is allowing citizens to pay their taxes using stablecoins, according to a report in Clarin.
Quoting the General Director of the tax authority (Mendoza Tax Administration or ATM), Nicolás Chávez, the service is enabled by new technology included with the payment processor they utilize. Currently, a taxpayer can select the crypto option, is then mailed a QR code, and then pay with digital currency converted into pesos. This crypto option became available on August 24th. Of course, you may still pay using more traditional methods.
ATM explains the decision to accept crypto:
“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.”
A tutorial is available online for individuals that would like to pay their taxes or fees using crypto.
Of note is the statement that all of Argentina may gain access to the stablecoin option at some point in the not-so-distant future.
Crypto is growing in popularity in Argentina due in part to rapidly increasing inflation and a shortage of US dollars. A recent survey pegged crypto holders at over 5% of the population. An article in Bloomberg last March described crypto as providing a “lifeline in Argentina’s chaotic economy.” If you cannot easily access dollars, especially when many transfers include high fees, stablecoins can be a more cost-effective and efficient path to safeguarding value. This is one oft-cited example of why crypto (and maybe stablecoins) are here to stay. It is simply a good option in many countries that can’t take for granted a stable government and competent politicians (which are few and far between everywhere).
Why Not? One Region in Argentina Allows Citizens to Pay Taxes with Stablecoins Republished from Source https://www.crowdfundinsider.com/2022/09/195474-why-not-one-region-in-argentina-allows-citizens-to-pay-taxes-with-stablecoins/ via https://www.crowdfundinsider.com/feed/