The local government of Buenos Aires, capital of Argentina, announced that it would begin accepting tax payments in cryptocurrency. This is the latest in a series of pro-blockchain policies announced by South American cities.
Mayor Horacio Rodriguez Larreta announced that this policy will not change the fact that the government does not hold crypto in its accounts, rather his team will work with companies and crypto exchanges to create an interface layer to provide another option to taxpayers.
“The city will not have crypto in public accounts, but through an agreement with virtual wallets, we will add an additional payment option to the ones we already have, with the aim of making things easier,” said Rodriguez Larreta.
Crypto exchanges that have been approved for this new policy include local firms SatoshiTango, Buenbit, Ripio, and Belo, as well as Mexican firm Bitso. Payments made in crypto will be converted into the local fiat currency, the Argentine peso, before being deposited in government coffers.
Earlier this year, Rodriguez Larreta’s government published a white paper proposing a blockchain-based digital identity. According to CoinDesk, it should be operational between the last quarter of 2022 and the first quarter of 2023.
A few weeks ago, Rio De Janeiro in Brazil announced that it would accept municipal tax payments in cryptocurrency starting in 2023.