The Argentinian western central province Mendoza has announced it will accept Bitcoin payments as a medium for tax and governmental obligations.
Nowadays, when it comes to bounding in shiny modernization lights, we can see those proud governors juxtaposing the flashy Bitcoin in their financial regulations, making sure to carry a sporty medal of honor for the rest of their lives.
The general director of the Mendoza tax administration authority mentions: “This is another gate to ease tax payments for taxpayers.”
Nicolas Chavez also elaborated: “This is a service offered by the payment processor with which we have incorporated new technology, such as virtual wallets and cryptocurrencies.”
Gaugers of the province known for its wine production have now provided ATM services for payers to receive their immediate receipts for their taxes: “We ensure that from the legal point of view this kind of payment is guaranteed. When someone makes an operation with blockchain technology (encrypted information of a transaction on the network), the payment currency is guaranteed,” says Chavez, who is also a lawyer specializing in tax affairs.
As the government receives the final taxes in Argentinian Pesos, the tax-taking mechanism begins with private-sector third parties that receive the taxes in Bitcoin and use internal exchanges to avoid price fluctuations.
Argentina is catching up with Bitcoin
Mendoza-like programs before. For instance, Buenos Aires’s municipal authorities introduced 2023 programs for Bitcoin acceptance and the use of its own technology for Identification systems.
While we expect Bitcoin to be a challenger of government authority, steps taken such as in Argentina and El Salvador can help to speed up the transition from a fiat standard to a Bitcoin standard. The result of this mutation can help governments to minimize the bureaucratic processes and indeed become better servants to their population. The current applicable regulation in Mendoza can become a pilot program for a widespread Bitcoin adoption.