Buenos Aires Considers Allowing Locals to Pay Taxes in Crypto

The mayor of Buenos Aires – Horacio Rodriguez Larreta – indicated that the city will soon start digitizing its administration processes, while blockchain technology will play a key role. Additionally, the political leader hinted that residents could be allowed to pay their taxes in crypto assets instead.

Buenos Aires Embracing Crypto

The latest megalopolis that might dive deep into the cryptocurrency universe is Argentina’s capital – Buenos Aires. In a recent interview, its mayor – Horacio Rodriguez Larreta – presented a 12-step plan called “Buenos Aires +,” which will aim to transform the city into a digital hub.

An important part of the agenda is “the self-sovereign digital identity, which is one of the most innovative tools that are being given in the world so that citizens have their digital identification.” Through an application, locals will be able to authenticate their identity, which will enable them to have access to all their information in one place – their phones.

Vaccination certificates, test results, civil registry documents, and birth certificates are some of the examples of documents that should go digital by the end of 2022.

The mayor noted that the successful outcome of the initiative requires enhanced security. For that purpose, the authorities intend to embrace blockchain technology:

“All this flow of information, which is going to increase exponentially, is going to be protected by blockchain technology. We have the clear conviction that citizens have to own their information, their documents because we trust their ability, and they have the responsibility to do so.”

Horacio Rodriguez Larreta, Source: Wikipedia

Apart from opening its arms to blockchain technology, residents of Argentina’s capital might be enabled to pay their taxes in cryptocurrencies.

“And we are going to work to facilitate the payment of taxes, the ninth measure of this plan. Together with the leading companies, we are working so that those who wish can pay their taxes in cryptocurrencies,” Rodríguez Larreta said.

Despite its possible interaction with the digital asset sector, Buenos Aires does not plan to invest some of the city’s Treasury in cryptocurrencies.

Rio de Janeiro’s Intentions

Brazil’s financial hub – Rio de Janeiro – has also taken steps to embrace the world of crypto. Earlier this year, the city’s authorities said they will accept digital asset payments for taxes starting from 2023.

Prior to that, Rio de Janeiro’s mayor – Eduardo Paes – vowed to allocate 1% of the city’s Treasury to bitcoin. The leader is a keen supporter of Miami’s mayor – Francis Suarez. Similar to him, Paes is willing to transform Rio de Janeiro into the crypto capital of Brazil and the tech center of South America.