In another shift toward widespread crypto adoption in Argentina, citizens from the Mendoza Province can now pay government fees and taxes using cryptocurrencies.
In an Aug. 27 statement, the Mendoza Tax Administration (ATM) described the new crypto payment service as fulfilling “the strategic objective of modernization and innovation,” giving “taxpayers different means to comply with their tax obligations.”
The service officially began operation on Aug 24., but at this stage, it will only accept stablecoins such as Tether (USDT) for tax payments.
Citizens can pay through the portal on the ATM website using any crypto wallets like Binance, Bybit, and Ripio.
Once the user chooses cryptocurrencies as their payment option, the system sends a QR code, with the equivalent amount of stablecoins converted to pesos by an undisclosed online payment service provider.
When ATM receives the payment, a receipt is sent to the taxpayer.
Another step toward crypto adoption
The announcement by the ATM is just the latest in a long line of crypto-related adoptions across Argentina.
Mastercard announced earlier this month it would launch a card supporting 14 coins including USDT in Argentina ahead of a wider rollout supporting 90 million online and physical stores.
In April, the country’s capital Buenos Aires unveiled plans to start accepting public financial transactions in crypto.
An unstable economy has seen major adoption of cryptocurrencies, especially stablecoins, which escalated in price after the resignation of Argentina’s economy minister in July.
In emailed statements to Cointelegraph last month, Tether noted that the country has “battled high levels of inflation throughout its history.” Due to the instability of the Argentinian Peso, there is high demand for US dollars, noting:
“Tether has provided a real tool for users facing economic crises in Argentina.”
Since 2016, the country has been in a one sided battle against inflation, as a lack of trust in the central bank and government spending hit new highs.
Combined with the Argentinean peso’s depreciation, it’s a perfect storm of events that have forced many into the arms of Bitcoin (BTC) and crypto to hedge against inflation.
“USDT allows Argentinians to access a market that is truly global and liberates them from local black markets with highly constrained liquidity resulting in high premiums. It also empowers them to hold Tether in ways that cannot be confiscated by the government, unlike local bank accounts,” added Tether.
Despite the market still being deep in the throes of a crypto winter and the central bank stepping in to block coin offerings in May, the country’s citizens continue to turn to stablecoins to help store the value of their savings in the United States Dollar (USD).