Florida Republican Matt Gaetz introduced a bill on Tuesday to allow federal income taxes to be paid using Bitcoin (BTC). The proposed legislation requires the U.S. Secretary of the Treasury to establish a program facilitating tax payments in BTC. As of now, only Colorado permits the use of cryptocurrency for paying taxes.
The announcement did not pass by the crypto community unnoticed. Billy Markus, co-creator of Dogecoin and known as Shibetoshi Nakamoto, expressed his support for the idea, stating a preference for paying taxes with Ethereum (ETH) instead of converting it to cash. This viewpoint highlights a roiling demand to integrate digital currencies into standard financial transactions.
i wouldn’t mind sending the government 34% of the Ethereum instead of 34% of the estimated cash value at the secondWIn of purchase
— Shibetoshi Nakamoto (@BillyM2k) June 25, 2024
Gaetz’s proposal arrives as cryptocurrencies gain wider acceptance. If enacted, this bill would represent a significant shift in tax payment methods, aligning with the interests of crypto enthusiasts who prefer to use digital assets directly.
Win-win?
Paying taxes with Bitcoin or Ethereum could help taxpayers avoid the complications and potential losses associated with converting crypto to fiat currency at volatile market rates. From another point of view, this option may offer a more straightforward method for handling tax obligations to the government with digital assets.
The progression of this bill will be closely watched by crypto enthusiasts on one side and policymakers on the other, marking a potential step toward broader acceptance and use of digital currencies in one of the biggest financial systems.