On the 20th (local time), U.S. Rep. Warren Davidson (R-Ohio) introduced the "Bitcoin for America" bill, which would allow federal tax payments in Bitcoin. The bill aims to strengthen the long-term fiscal soundness of the United States and the competitiveness of digital assets by stipulating that all taxes paid in Bitcoin be deposited in the "Strategic Bitcoin Reserve."
Rep. Davidson described the measure as "a step toward modernizing the American financial system and ensuring that institutions embrace technological innovations already used by many citizens." He emphasized that taxing Bitcoin and adding it to the reserve fund "has the effect of allowing the nation to hold assets that have appreciated in value," a strategic choice that contrasts favorably with the dollar, which has been depreciating due to inflationary pressures. He added that the bill provides citizens with a choice in how they pay their taxes while also strengthening the government's fiscal foundation.
According to data, Bitcoin's total supply is limited to 21 million, making it highly scarce. The strategic Bitcoin reserve contributes to diversifying the US government's asset mix and securing an independent store of value. With major countries like China and Russia already accumulating Bitcoin, some analysts suggest this is a strategic response by the US to ensure it doesn't fall behind in the global digital asset race.
Bitcoin's openness and decentralized structure are seen as broadening financial accessibility, providing even unbanked Americans with the opportunity to participate in federal tax payments. Furthermore, Bitcoin reserves are seen as a hedge against the inflation risks of dollar-centric monetary policy and could serve as a bulwark to enhance the long-term stability of the national budget. There are also hopes that strengthening the U.S. government's balance sheet could reduce its reliance on debt.
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