Even though we’ve been developing crypto usages in other posts, this article will be focused on blockchain technology applications and on the use of cryptocurrencies as payment method within the Argentine public sector. In this aspect, from the legislative point of view, we have covered different issues such as the Nature of Cryptocurrencies within Argentine legal framework, unsuccessful Provincial and Money-Laundering Bills, National Bills, Bill for Payment of Wages and Salaries in Cryptoassets and, lately, New Reform Bill to the Anti-Money Laundering Act.
Regarding progress within the private sector in Argentina, we can refer to our posts on Local Features of the Argentine Fintech Market, Crypto Mining in Argentina: Panacea or Risky Investment? And Crypto-Mining and Energy Costs in Argentina: An Ever-Evolving Business Plan.
It is not essential to read this material for the comprehension of this article but we suggest doing so in case of interest on any of such topics.
City of Buenos Aires (CABA)
Collection of taxes through cryptoassets
As reported by Infobae in April 2022, CABA authorities announced -upon launching “BuenosAires+” plan- that those taxes applicable within the City of Buenos Aires could be paid in cryptocurrencies. This only applies to taxes applicable within its own jurisdiction such as Car License Plates’ Fees, Municipal Lightning and Cleaning Services or Gross Income Tax, not to national taxes/fees.
Data and information would be supported by blockchain technology. Even though the City of Buenos Aires was the first jurisdiction in making such an announcement and reported to be working in cooperation with Bitso, Satoshi Tango and BELO, we couldn´t find further details nor Resolutions for the implementation of such measure. We assume the system was not activated in 2022. Based on this article posted by iProUp, it is speculated that taxpayers could use any currency able to be supported by the different platforms, making conversion at payment time.
Mendoza
Blockchain technology for serving tax debt notices
As reported by Ecocuyo, the Mendoza Tax Administration (ATM) issued Resolution 107/2022 whereby a new system for tax notices was created using geographical references with high safety levels. The geographical information would be loaded on a blockchain protocol together with further details of the tax debt bill.
This would be helpful for verifying notification and would hinder legal resources for tax avoidance. Authorities have great expectations on this new tool aiming to make collection procedures cheaper and more efficient.
Collection of taxes and fees in cryptocurrencies
As from September 2022, the Province of Mendoza accepts payment of taxes and fees in cryptocurrencies. Such a booming news was reported by the specialized media Cointelegraph. At this first stage, only stablecoins pegged to the dollar are accepted (since taxes can only be paid in legal tender).
At a second stage, tokens with a variable value could be accepted. For the time being, tokens must be converted into USDT in order to be transferred. It is uncertain how ATM will manage the USDT received but it is an interesting option for a provincial government to receive assets that are valued at dollars at the international market.
Training in cryptocurrencies
As reported by iProUp in July 2022, Mendoza is one of the first jurisdictions in launching cryptoassets education programs. The first program had four meetings and was in charge of Bitcoin Argentina NGO. This is another shift towards a widespread crypto adoption in Mendoza and as part of the strategy to be considered a crypto-friendly jurisdiction.
Chaco
EcoToken. A Decree-regulated environmental initiative.
This issue was addressed by InLitoral in June 2022, explaining that the government of the Province of Chaco had implemented a utility token to operate as a financial asset for the payment of environmental services. The local bank would work as the financial agent and the different Ministries would be in charge of its implementation.
Tokens would be issued and assigned to individuals and companies committed to reducing greenhouse gases. Even though it seems to be a great initiative that economically rewards sustainability, regulation is still pending regarding the project’s viability.
Conclusion
For the time being, these announcements seem more a fashionable move rather than viable and concrete projects. However, these are healthy initiatives within the public sector. Blockchain-based solutions can improve public administration and state actors are likely to achieve huge transformations with the benefits of this technology.