by Sergio Goschenko
Mendoza, an Argentinian province, has implemented a system that allows taxpayers to pay their taxes fully with cryptocurrencies. The system, which was launched this week, is part of a strategic push for the modernization and digitalization of payments carried by the tax authority of Mendoza and uses the services of a third party to process the transactions.
More and more governments are including cryptocurrencies as a way of paying state-related obligations due to their recent popularity. Mendoza, a province of Argentina, is one of the first in the country to implement a digital system that allows taxpayers to execute payments and other operations with digital currencies.
The system, launched on August 24, is part of a strategic move by the authorities of the province to modernize the payment of tax and state tributes, offering several options to citizens to fulfill their obligations. Nicolas Chávez, general director of the Mendoza tax administration authority, stated:
It is one more door to facilitate the payment of taxes to taxpayers. This is a service offered by the payment processor with which we have incorporated new technology, such as virtual wallets and cryptocurrencies.
While the payment utility is directly embedded in the page of the province, the payments are processed by a third-party company, that accepts crypto and liquidates the payments made in Argentinian pesos to the province. The system only receives payments in stablecoins, including USDT, USDC, and DAI, among others. In this way, the system maintains volatility out of its operations.
Other municipal governments in Argentina and in Latam have also announced the inclusion of cryptocurrencies as a means of payment for taxes. Last April the head of the government of Buenos Aires, Horacio Larreta, announced that the city was planning to also introduce crypto payments for taxes. Larreta stated that this use case could be implemented in 2023 alongside a blockchain-based identification system.
Rio de Janeiro, one of the biggest cities in Brazil, also reported the inclusion of these assets as payments for taxes in 2023 due to their popularity. But Rio’s plans go even further, envisioning crypto payments for other services like taxi rides, and NFTs to promote the areas of arts, culture, and tourism, as well as investing part of the city funds in crypto through a new institution, the Municipal Committee for Crypto Investments.
What do you think about the inclusion of crypto to pay taxes in Mendoza? Tell us in the comments section below.
Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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