TL;DR
- The “Bitcoin for America Act” bill was introduced by Ohio Congressman Warren Davidson.
- The main goal is to diversify national wealth with BTC to mitigate dollar inflation.
- Experts estimate the Reserve could accumulate over 2.6 million BTC by 2030 through this voluntary route.
We are about to witness a profound transformation of the United States’ financial landscape, driven by digital assets. Warren Davidson, Congressman for Ohio, introduced legislation called the “Bitcoin for America Act,” whose primary objective is to allow citizens to pay federal taxes with Bitcoin in the United States.
The Congressman’s proposal establishes that the collected cryptocurrencies will be earmarked to bolster the nation’s Strategic Bitcoin Reserve. According to the presented bill, this measure would allow the United States to “diversify its national wealth into a non-inflationary asset that serves as a long-term store of value.”
This initiative is perceived as crucial to prevent the United States from falling behind emerging powers in monetary digital innovation, such as China and Russia.
“The Bitcoin for America Act marks an important step toward modernizing our financial systems and embracing the innovation that millions of Americans already use every day,” Representative Warren Davidson stated in a press release.
Warren Davidson emphasized that the law will offer more options for the American people to pay federal taxes with Bitcoin, while also laying a stronger financial foundation for the government.
The Strategic BTC Reserve: A Market-Driven Model
In the past, similar proposals have been introduced, for example, those by Senator Cynthia Lummis or Representative Byron Donalds, which sought to create a Bitcoin reserve. However, Davidson’s bill differs by adopting a middle ground. While previous projects suggested direct purchase or seizure of funds, the current law focuses on voluntary and democratic contributions.
The Bitcoin Policy Institute (BPI), which has formally endorsed the project, highlighted this approach. Conner Brown, Head of Strategy at BPI, noted that by allowing taxpayers to voluntarily contribute Bitcoin through their tax payments, it creates “the first truly democratic, market-driven model for national Bitcoin accumulation.”
The BPI’s projections are significant. A forecasting model developed by the firm and BitcoinQuant indicates that if just 1% of federal taxes were paid in Bitcoin between January 2025 and the end of 2030, the reserve could accumulate over 2.6 million BTC, equivalent to about $230 billion at the asset’s current price.
Davidson concluded that by allowing paying federal taxes with Bitcoin, the nation will benefit from “a tangible asset that appreciates in value over time, unlike the U.S. dollar, which has steadily lost value under inflationary pressures.”
In a recent market context, Bitcoin continued its slide on Thursday, trading around $88,769, representing a nearly 30% drop from its August all-time high of over $126,000.
