Bitcoin Updates: U.S. Suggests Using Bitcoin for Tax Payments to Dominate Worldwide Digital Economy
- U.S. Rep. Warren Davidson introduced the "Bitcoin for America Act," allowing Americans to pay federal taxes in Bitcoin and creating a Strategic Bitcoin Reserve. - The bill cites Bitcoin's fixed supply and long-term appreciation potential, aligning with corporate strategies like Michael Saylor's $48.37B BTC holdings. - It aims to counter global competition from China/Russia while balancing risks like BTC's 30% price drop from its August peak. - Proponents argue voluntary BTC tax contributions could build
A new piece of legislation introduced in the U.S. House of Representatives, known as the "Bitcoin for America Act," proposes to let Americans use
The legislation claims that Bitcoin’s capped supply of 21 million coins makes it a more reliable store of value over time than traditional fiat money, which can lose value due to inflation. By making it possible to pay taxes in
The initiative coincides with increasing institutional interest in Bitcoin, as seen with Michael Saylor’s company,
The Bitcoin for America Act is also a response to international competition. Reports indicate that countries such as China and Russia are accumulating Bitcoin, motivating U.S. lawmakers to act to maintain competitiveness. Davidson’s proposal offers a compromise between previous plans, such as Sen. Cynthia Lummis’s (R-WY) $80 billion Bitcoin acquisition proposal and Rep. Byron Donalds’s (R-FL) budget-neutral accumulation approach. By permitting voluntary tax payments in BTC, the bill
The Bitcoin Policy Institute, which backs the legislation,
While skeptics may doubt the feasibility of paying taxes with such a volatile asset, advocates argue that the bill’s voluntary approach and emphasis on long-term value help offset short-term risks. As the discussion continues, this proposal signals a broader movement toward integrating digital assets into national policy—potentially transforming the U.S. economic landscape in the digital era.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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