Mendoza Tax Administration (ATM), in a Saturda Statement, described the new crypto-payment service as “the strategic objective modernization and innovation” and giving taxpayers “different means to comply with their taxes.”
Citizen can use any cryptocurrency wallet such as Binance, Ripio, or Bybit to pay via the ATM portal.
After the user has selected cryptocurrency as their payment option, the system will send a QR code with the equivalent amount in stablecoins converted into pesos via an unidentified online payment service provider.
A receipt is issued to the taxpayer when ATM receives payment.
A further step towards crypto adoption
The ATM’s announcement is the latest in a long list of crypto-related adoptions throughout Argentina.
Mastercard had earlier announced that it would launch an card to support 14 coins, including USDT in Argentina. This was ahead of a larger rollout supporting 90,000,000 online.
April saw Buenos Aires, the capital of Argentina, announce plans to accept public financial transactions in crypto.
A volatile economy has seen a significant adoption of cryptocurrency, particularly stablecoins. The price of these coins soared after the resignation by Argentina’s economy minister.
Tether, in emailed statements to Cointelegraph last Month, noted that there has been a high demand for United States dollars due to the instability of Argentina’s peso.
“Tether has been a great tool for those who are facing economic crisis in Argentina.”
The country has been fighting inflation in an unbalanced manner since 2016, when the government spent too much and there was less trust in the central banks.
Related: Argentines switch to Bitcoin amid inflation fears: Report
It’s a combination of the depreciation of the Argentinean currency, and a storm of events that has forced many to embrace Bitcoin ( BTC) as a way to hedge against inflation.
The USDT gives Argentinians access to a truly global market and frees them from local black markets that have limited liquidity, resulting in high premiums. They can also hold Tether in ways that are not subject to confiscation by the government. This is unlike local bank accounts which have added Tether.
Despite the crypto winter still raging and the central bank offering block coins in May; the country’s citizens are continuing to use stablecoins to store their USD savings.