Rep. Matt Gaetz (R-Fla.) introduced a bill Tuesday that would allow Americans to pay their federal income tax in bitcoin.
Gaetz said the radical move would “promote innovation, increase efficiency, and offer more flexibility to American citizens.”
“This is a bold step toward a future where digital currencies play a vital role in our financial system, ensuring that the U.S. remains at the forefront of technological advancement,” he said in a statement.
The congressman cited his recent visit to El Salvador — which in 2021 became the first country to allow bitcoin as a legal currency — as the inspiration for the bill.
Colorado was the first government to approve cryptocurrency payments for taxes in 2022. Utah, New Jersey and Kentucky have also made moves toward approving the payment.
The bill comes as Congress grapples with how to regulate cryptocurrency, a rapidly growing industry that has been marred by fraud and instability.
