Rep. Warren Davidson (R-OH) has introduced the Bitcoin For America Act, a legislative proposal that would permit Americans to pay their federal taxes in bitcoin.
Under the bill, all bitcoin tax payments would be deposited into a new Strategic Bitcoin Reserve, intended to bolster the nation’s long-term financial resilience.
Bill aims to modernize tax payments
According to Davidson, this initiative is meant to modernize U.S. financial systems and embrace technology already used by millions of Americans. The congressman stated:
“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.”
Strategic Bitcoin Reserve proposed
The bill calls for all bitcoin received as tax payments to be stored in a Strategic Bitcoin Reserve.
Supporters argue that bitcoin’s fixed 21 million-coin supply and history of appreciation against inflationary currencies could provide a valuable, independent store of value for the U.S.
The initiative is presented as a way to diversify national assets and reduce reliance on debt.
Davidson emphasized that, unlike the U.S. dollar, bitcoin is not subject to inflationary monetary policy, potentially shielding the reserve from ongoing dollar devaluation. For a historical perspective, see the chart on US dollar devaluation.
Competing globally in digital assets
The background to the bill notes that other major nations, such as China and Russia, are already accumulating bitcoin.
Davidson contends that this measure will help ensure the U.S. remains competitive in the evolving landscape of digital assets.
The proposal also highlights bitcoin’s decentralized nature, which could expand financial access and allow a broader segment of Americans, including the unbanked, to participate in federal tax payments.
Broader implications for national finance
The Bitcoin For America Act positions itself as a step toward sound money and digital innovation.
With growing interest among countries holding bitcoin reserves, the bill aims to strengthen the national balance sheet and offer a hedge against economic risk.
