Although the crypto market has been facing tough times with Fed adding fuel to the fire with its hawkish approach to the industry, some countries have shown an incredible interest in digital assets simultaneously.
The fifth most populous territory of Argentina, Mendoza, known for its production of wine, now accepts crypto payments to receive provincial taxes.
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As per the Press Release published by the government on August 27, residents of Mendoza are allowed to pay their taxes and other government fees using the ‘pay online’ section of the tax administration. The announcement came to the public after the Tax Administration Mendoza (ATM) disclosed that the agency had added a new payment method to facilitate users to pay online.
The new payment service rolled out on August 24 currently accepts the stablecoins like Tether’s USDT and DAI. It supports all types of wallets and proceeds a transaction using a QR code.
When a user connects via gov. portal using ‘pay online,’ it asks for the stablecoin currency users want to pay in, then sends a QR code to the user with the equivalent amount of tax calculated against the native currency, pesos. Notably, funds will be converted into pesos immediately, utilizing an undisclosed online payment service provider.
The press release added;
“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.”
Argentina’s Hiking Inflation Figures Led To Crypto Adoption
The government took this decision after the inflation rate skyrocketed in the state. As a result, the instability of the country’s Pesos pointed toward higher demand for the US dollar, making stablecoin a thriving tool to fight. Notably, many locals have already adopted digital assets seeing hiking inflation in the state. As per last month’s stats, Argentina’s economy has hit a 20-year high inflation rate of 71%, with the central bank skyrocketing interest rates to 69.5%.
Earlier this month, Mastercard announced issuing prepaid cards for Argentina’s 90 million online stores in partnership with the world’s largest exchange by trading volume, Binance. These cards enable consumers to use 14 cryptocurrencies, including USDT stablecoin, alongside allowing withdrawal from bank ATMs wherever MasterCards are supported.
Cryptocurrencies caught hype in Argentina following its neighbor country El-Salvador’s innovative move to give bitcoin a legal tender, citing the unbanked nation as the reason behind the decision.
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Afterward, Alberto Fernandez, president of the Argentina state, represented his openness to crypto last and intended to follow in the footsteps of his fellow country. Unfortunately, though, few achievements have been marked since then.
Fernandez added in a statement;
“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”.
Featured image from Pixabay and chart from TradingView.com