Capital of Argentina Plans to let Citizens Pay Taxes in Crypto

Key Takeaways:

  • The plan named Buenos Aires+ seeks to simplify and streamline the link between citizens and the city
  • Mayor believes that leveraging blockchain technology will “let users have control over their data.” 
  • The Capital city also plans to complete the implementation of a digital ID system to let citizens simplify document requests and payments 

Buenos Aires Mayor Horacio Rodriguez Larreta announced that residents will be allowed to pay taxes in cryptocurrencies such as Bitcoin in the Capital city of Argentina. The Plan named Buenos Aires+ is aimed at improving public services through technological reforms.

According to the Mayor, the plan seeks to “simplify and streamline the link with citizens and the city,”. The plan has mainly 12 goals, another of which is using blockchain technology for protecting personal data. “We have a clear conviction that citizens must own their information, their documents, because we trust in their capacity and they have the responsibility to do so,“All this data flow, which is going to increase exponentially, is going to be protected by blockchain technology, the second transformation” Buenos Aires Mayor said during his virtual presentation explaining the plan.

Rodriguez Larreta noted that so far the city has digitized nearly 900 different procedures. Laretta noted in order to keep pace, taking advantage of decentralized digital technologies will be required. A draft of the Mayor’s plan was initially released on March 10. The Mayor’s Tweet explaining the plan read, “People will have the possibility to digitally authenticate their identity through an application and will have access, in a single place, to their information, documentation, and personal records, facilitating the management of their procedures, applications, and permits”. He further added that leveraging blockchain technology will “let users have control over their data.”

Blockchain-powered ID services have already been explored widely, among them include initiatives by the World Economic Forum, R3, ConsenSys, and IBM. To avoid the risks associated with the volatility of cryptocurrencies, the municipality does not plan to hold any tokens as part of the public treasury. The plan is to partner with several wallets/ payment processors to convert cryptocurrency payments into fiat money—in this case, Argentine pesos—immediately after they’re made.

One of the key projects that Buenos Aires is also looking to complete is the implementation of a digital ID system that would let citizens simplify document requests and payments made to the city. The ID system is also expected to help streamline time-consuming errands amongst different government offices, giving the citizen the opportunity to manage all their tasks in the same system.

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Saniya Raahath