US policy group USABTC has proposed a Bitcoin (BTC) tax-free zone to stimulate the US economy. Bitcoin could reshape the US economy with this new offering.
At this point, USABTC presented a bold proposal to establish a tax-free Digital Economic Zone (DEZ) for Bitcoin in the USA. This proposal aims to make the country a world leader in the digital economy while preserving the key role of the dollar.
According to the proposal, this zone will allow Bitcoin to be bought, sold and accumulated without capital gains taxes. However, taxes will only be applied when converting Bitcoin back to traditional currency.
Arguing that it is both impractical and politically challenging for the government to purchase Bitcoin, USABTC therefore proposes the establishment of a DEZ.
According to USABTC, a DEZi would both generate revenue for the government through an exit tax on the conversion of Bitcoin into traditional currency and could attract more investors by offering tax-free capital gains.
“Under this proposal, traders would not pay capital gains taxes on Bitcoin transactions within the DEZ. However, they would pay taxes when they convert Bitcoin back to fiat, potentially creating a new source of revenue for federal and state treasuries.”
USABTC said it believes this tax-free zone initiative can secure America's financial future by harnessing the potential of Bitcoin and creating a resilient and innovative economic environment, while preserving the central role of the dollar.
USABTC also stated that this initiative will eliminate the threat of Bitcoin being used as a weapon by foreign countries that do not have America's interests in mind.
USABTC plans to begin the implementation phase in 2025 and expects the DEZ to be fully operational by 2026, pending all necessary statutory and regulatory approvals.
*This is not investment advice.