Florida Republican Congressman Matt Gaetz has proposed a new law authorizing the US Treasury Secretary to implement a plan allowing federal income taxes to be paid with Bitcoin.
Gaetz said in a statement that the legislation would modernize the US tax system.
The lawmaker argued that allowing taxpayers to use the flagship cryptocurrency to pay government fees would promote innovation, increase efficiency, and provide more flexibility for American citizens.
“This is a bold step towards the future where digital currency plays a significant role in our financial system, ensuring that the United States remains at the forefront of technological advancement.”
According to the proposed bill, “The Secretary shall develop and implement a method to allow for the payment of any tax imposed under this title to be made using Bitcoin.”
Gaetz introduced the bill on Tuesday after attending the second inauguration of Salvadoran President Nayib Bukele, who made this Central American country the first to adopt Bitcoin as legal tender.
Gaetz’s office stated that the lawmaker witnessed how Bitcoin has helped El Salvador promote financial stability and create job opportunities.
In March of this year, Bukele stated that the country will continue to buy Bitcoin every day until the legal tender cannot afford it. According to data from the El Salvador Bitcoin office, the country currently holds 5,793.76 bitcoins, valued at over $353 million.