In a press release, Gaetz’s move was credited to his recent trip to El Salvador, where he met with President Nayib Bukele. One of Bukele’s first efforts was adopting Bitcoin as legal tender in the country, an embrace that Gaetz wants to recreate in the United States.
“My groundbreaking legislation will modernize our tax system by allowing federal income tax to be paid with Bitcoin,” Gaetz said. “By enabling taxpayers to use Bitcoin for federal tax payments, we can 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.
The legislation comes as part of a trend of growing warmness from Republicans toward cryptocurrency, in contrast with the Biden administration’s skepticism towards it.at the largest Bitcoin event of the year on July 25-27. He has increasingly signaled his support for cryptocurrency in recent weeks.The reversal of his stance on Bitcoin has earned him the support of some cryptocurrency investors, such as the Winklevoss twins.