In a significant positive moment for the crypto space, a Bitcoin tax-free zone could be established in the US as a move to provide a boost to the country’s digital economy.
The USABTC policy group, an advocate for Bitcoin, has proposed a Bitcoin tax-free zone in the US. The group has put forward the proposal as a way to mitigate the country’s current financial issues. In a press release, the group mentioned the zone would help counter issues like national debt, pressures on the US dollar, and deficit spending.
It said, “We advise the creation of a digital economic zone with tax-free trading but taxed redemption. This ensures instant market fit, strengthens the dollar, and positions the US as a leader in a vital industry, at no cost to taxpayers.”
The proposed digital economic zone will help integrate BTC into the American financial system. It will ensure benefits like tax-free capital gains and overall financial growth. Meanwhile, the group hasn’t proposed BTC as a legal tender but rather as a means to strengthen the US dollar. It said the move would help neutralize the possibility of countries weaponizing Bitcoin.
Other actions suggested by the USABTC include collaboration with tax authorities, legislative action, and using the exchange stabilization fund. Moreover, it has also recommended self-custody for investors in BTC. Further, the press release detailed the phases of implementation, example use cases, and benefits for US lawmakers. In other words, it is a comprehensive road map for the policy move.
In recent months, the benefits of diversifying one’s reverse asset have been in the news worldwide. Traditionally, nations and institutions have relied on gold, foreign currencies or government securities as the basis of their reserves. However, the emergence of Bitcoin, with its unique properties, has challenged this norm, presenting potential benefits.
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