- Congressman Matt Gaetz introduced a bill to pay federal taxes with Bitcoin
- The House Representative is supporting the cryptocurrency industry
- Crypto is in the spotlight going into the Presidential election
Paying Taxes with Bitcoin?
Congressman Matt Gaetz has introduced a bill to allow federal tax payments in Bitcoin. The bold move aims to position Bitcoin as a legitimate payment method for taxes right next to the US dollar. The House Representative is highly optimistic about the cryptocurrency space and wants to enable wider adoption of the novel asset class.
The move also comes amid the heated race for the Presidential seat. Donald Trump and Joe Biden are neck and neck in the election campaign, and both have talked up digital assets as another way to attract voters in the election.
Wider Changes Required
If approved, the bill would amend the Internal Revenue Code of 1986, as the new payment method will need to be accommodated. Still, certain challenges will need to be tackled from a regulatory perspective.
Once a payment in Bitcoin has been made, it will need to be converted into US dollars upon arrival. This will require extensive work on the technology aspect of transacting with Bitcoin.
Also, the option of paying with Bitcoin will need to ensure that the taxpayer’s transfer is protected and handled with maximum security until it is received by the government. This includes protecting the interests of the taxpayer by not compromising the secure transfer environment.
