Bitcoin has returned to the spotlight this year after its price crash in 2022 (although former President Donald Trump and President Joe Biden could be on the verge of blowing up the market).
The price of bitcoin has fallen this week, dropping towards $60,000 per bitcoin after topping $70,000 earlier this month. With fears emerging, a "real correction" has already begun.
Now, As Trump warns that the US dollar could lose its position as the world's reserve currencyU.S. Rep. Matt Gaetz, R-Fla., introduced what he described as a "groundbreaking" initiative. bill which would allow federal income taxes to be paid in bitcoin.
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Representative Matt Gaetz (R-FL) introduced the bitcoin bill to Congress.
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"This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring that the United States remains at the forefront of technological advancement," Gaetz said in a statement. statementadding that it would "promote innovation, increase efficiency and offer more flexibility to American citizens."
Gaetz's statement is reminiscent of comments recently made by former US President and 2024 White House candidate Donald Trump, who said he wants the United States to lead the development of Bitcoin.
Trump: "I will end Joe Biden's war on cryptocurrencies" saying at a recent rally in Wisconsin. "We will make sure that the future of cryptocurrencies and the future of bitcoin are made in America."
Trump has been leaning into bitcoin and cryptocurrencies in recent weeks after making millions from a series of cryptocurrency-based digital trading card non-fungible tokens (NFTs) and putting him sharply at odds with the Biden administration’s anti-crypto stance. Trump declared his support for cryptocurrencies in late May and began accepting campaign donations in bitcoin, ethereum, solana, dogecoin and shiba inu.
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The bitcoin bill followed a bitcoin price crash that some feared could get much worse.
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In 2022, the state of Colorado began accepting cryptocurrencies for tax payments, while Utah, New Jersey, and Kentucky also took steps to accept bitcoin.
US lawmakers have made some progress with cryptocurrency bills this year after failing to find common ground on several bills over the past few years.
In May, the House of Representatives passed the Republican-led Financial Technology and Innovation for the 21st Century Act, known as Fit21, which splits responsibility for cryptocurrency markets between the Securities and Exchange Commission (SEC) and the Commodity and Futures Trading Commission (CFTC), although it is not expected to become law this year.
