TL;DR
- The Biden administration proposes a 30% tax on electricity used by Bitcoin miners.
- Even miners who generate their own electricity from renewable sources would be subject to this tax.
- Critics argue that the real intention is to suppress Bitcoin and pave the way for a Central Bank Digital Currency (CBDC).
President Biden’s administration has revived a proposal that has caused a stir in the cryptocurrency community: a 30% tax on electricity used by Bitcoin miners.
This tax, known as the Digital Asset Mining Energy Tax (DAME), aims to reduce cryptocurrency mining activity, particularly Bitcoin, due to concerns about its environmental impact.
Biden administration is proposing a 30% tax on electricity used by #bitcoin miners, even if you are off-grid using your own solar and wind generation. All of the reasons they provide are pretextual, their real reason is that they want to suppress Bitcoin and launch a CBDC. pic.twitter.com/juNHvO2NBx
— Pierre Rochard (@BitcoinPierre) March 12, 2024
The proposal, which initially appeared to have been shelved, was reintroduced in the White House’s tax revenue proposals report for the next fiscal year.
This has generated a backlash among Bitcoin miners, who claim that this measure seeks to restrict the development of BTC and pave the way for a Central Bank Digital Currency (CBDC).
One of the main points of criticism is that this tax would apply even to miners who generate their own electricity through renewable sources, such as solar or wind energy.
This contradicts the justification of the tax to encourage the adoption of green energy For Bitcoin
Critics argue that the true intention behind this proposal is to hinder the growth of BTC and promote government-controlled alternatives, such as CBDCs .
Prominent figures in the cryptocurrency community, such as Pierre Rochard and Marty Bent, have expressed their opposition to the proposal.
Rochard has called the reasons provided for the tax pretexts, stating that the real goal is to suppress Bitcoin.
Bent has noted that BTC mining, far from being harmful to the environment, actually harnesses surplus and wasted energy, providing an economic benefit.
DAME proposes a gradual 30% tax on the cost of electricity used in the mining process, which would be implemented over three years, starting at 10% in the first year and reaching 30% in the third year and thereafter.
Bitcoin miners would be required to report their electricity consumption and costs, establishing a tax base tied directly to their energy consumption.
The DAME tax proposal has sparked controversy within the cryptocurrency community and raises important questions about the regulation of the space and the government’s role in its future development.
