Argentina has taken a step towards widespread cryptocurrency adoption with the launch of a new payment service that allows citizens to pay fees and taxes using digital currencies. The payment service is only available to citizens in Argentina’s Mendoza province, and according to officials from the Mendoza Tax Administration (ATM), it aims to provide taxpayers with different means to comply with their tax obligations.

The service launched on 24 August 2022 and currently accepts only stablecoins such as Tether (USDT) for tax payments. Citizens can use crypto wallets such as Ripio, Binance and Bybit to pay their fees through the ATM website portal. After the user has selected cryptocurrencies as the payment method, the system generates a QR code with the equivalent amount of stablecoins converted to pesos.

The online payments provider that performs the conversion has remained undisclosed. Once the Mendoza Tax Administration clears the payment, the taxpayer receives a receipt, and the transaction concludes. Cryptocurrency adoption in Argentina is on the rise There’s been a lot of talk about cryptocurrency adoption in Argentina in the past year and for good reason.

According to ft. com, the rise in cryptocurrency adoption in the country is fuelled by distrust in the local banking system, high inflation, and limits imposed on how many pesos can be converted into more stable currencies. According to the same source, younger generations use crypto as a way to protect their savings, particularly in the context of high inflation.

In May 2022, Argentina’s central bank tightened the rules when it comes to crypto. For instance, local financial institutions can no longer offer cryptocurrency-related services. Banking officials have stated that these new rules aim to mitigate crypto risks for both users and the financial system.

In August 2022, cryptocurrency exchange Binance and Mastercard have launched a new prepaid rewards card in Argentina that supports both Bitcoin and BNB. The Binance Card will allow new and existing users in Argentina with a valid national ID to make daily purchases and perform financial operations such as bill payments using cryptocurrencies. Since they are registered as payment processors, exchanges such as Lemon and Binance are exempt from the rules imposed by the central bank, and their ability to pay and trade in cryptocurrency is not affected.

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