Florida Lawmaker Proposes Bitcoin for Federal Tax Payments

A novel measure that would allow Bitcoin to be accepted as payment for federal taxes was submitted by a Florida congressman.

Representative Matt Gaetz, a Republican, put up a measure on Tuesday that would let people of the United States pay their federal income tax responsibilities with Bitcoin (BTC). According to Gaetz, updating the tax code will foster creativity, boost productivity, and keep America at the forefront of technological innovation.

Per an official statement from Gaetz’s staff, the policymaker was inspired to pursue new legislation after witnessing Bitcoin’s impact in El Salvador. “This is a bold step toward a future where digital currencies play a vital role in our financial system,” said Gaetz.

Influence of El Salvador’s BTC Strategy

Under pro-crypto President Nayib Bukele, El Salvador became the first country to legalize BTC. Despite scrutiny from the IMF and even the U.S., the nation has moved forward with its BTC strategy and made billions in unrealized profit on its investment.

Gaetz’s Bitcoin-for-taxes bill is new and has yet to be discussed in Congress. If the bill advances, it could mirror part of Colorado state law, which authorizes paying taxes in cryptocurrency. Colorado started its crypto tax payment program in late 2022 and is the only jurisdiction across state lines with such policies.