US Proposes Tax-Free Bitcoin Zone to Boost Digital Economy
A new initiative in the United States seeks to position the country as a leader in the digital economy by establishing a Bitcoin tax-free Digital Economic Zone (DEZ).
Led by the USABTC policy group, the proposal suggests creating a DEZ where Bitcoin transactions would be exempt from capital gains taxes, though redemptions would be taxed. The goal is to foster a robust and innovative economic environment while retaining the dollar’s central role.
USABTC believes that direct government purchases of Bitcoin are impractical and politically challenging. Instead, they propose a tax-free zone to attract investors and stimulate growth within a regulated framework. A tax on Bitcoin conversions back to traditional currency would provide new revenue for the government.
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The plan includes developing a layer-2 Bitcoin system for secure transactions and outlines a phased implementation process, starting with an executive directive and involving extensive legal and public consultations. The Internal Revenue Service (IRS) would be involved in shaping the tax framework.
If successful, the DEZ could significantly enhance the US’s role in the digital economy, with the initial phases set to begin in 2025 and the zone potentially operational by 2026.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
