[Is Ethereum used for taxation? Dogecoin creator agrees with this idea]
Florida Republican Congressman Matt Gaetz introduced a bill on Tuesday that would allow the use of Bitcoin (BTC) to pay federal income taxes. The bill requires the U.S. Treasury Secretary to establish a program to facilitate the payment of taxes in Bitcoin. Currently, only Colorado allows the use of cryptocurrency to pay taxes.
The announcement caught the attention of the cryptocurrency community. Dogecoin co-creator Billy Markus, who goes by the screen name Shibetoshi Nakamoto, expressed support for the idea, noting that he would prefer to use Ethereum (ETH) to pay his taxes rather than convert them into cash. This view highlights the need to integrate digital currencies into standard financial transactions.
Gaetz’s proposal comes as cryptocurrencies gain wider acceptance. If the bill passes, it would represent a major change in how taxes are paid and would be in the interest of crypto enthusiasts who prefer direct access to digital assets.
Using Bitcoin or Ethereum to pay taxes may help taxpayers avoid the complexity and potential losses that come with market fluctuations when converting cryptocurrencies into fiat currencies. Viewed another way, this option may provide a simpler way to deal with government tax obligations.
The bill's progress will be closely watched by crypto enthusiasts and legislators, symbolizing the potential pace of wider acceptance and use of digital currencies in one of the world's largest financial systems.
