Representative Warren Davidson has introduced the Bitcoin for America Act, a legislative proposal that would allow Americans to pay federal taxes using Bitcoin and establish a U.S. Strategic Bitcoin Reserve. The act aims to modernize the financial system by integrating digital currencies, providing more payment options, and enhancing national economic stability.
Key provisions include exempting Bitcoin tax payments from capital gains tax, treating them similarly to foreign currency transactions, which could incentivize broader adoption. The bill also mandates the creation of a management framework by the Treasury, with coordination from the Federal Reserve and other bodies. Endorsed by the Bitcoin Policy Institute, the proposal projects that if just 1% of federal tax payments are made in Bitcoin, the reserve could accumulate around 3.5 million BTC by 2045, with an estimated value of approximately $11.1 trillion.
Conner Brown, Head of Strategy at the Bitcoin Policy Institute, emphasized the democratic approach, stating, "The Bitcoin for America Act proves that a strategic Bitcoin reserve doesn’t need to be a top-down mandate. By letting Americans voluntarily contribute Bitcoin through their tax payments, it creates the first truly democratic, market-driven model for national Bitcoin accumulation." This move aligns with global trends, as countries like Taiwan explore similar strategies, and could position the U.S. as a leader in the digital asset economy.
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