The United States will establish a Bitcoin tax-free zone to promote the development of the digital economy

The United States is planning a new proposal that aims to establish the United States as a global leader in the digital economy by establishing a Bitcoin-free Digital Economic Zone (DEZ). The proposal, led by the newly formed USABTC policy group, advocates for a tax-free DEZ where Bitcoin can be traded and accumulated without paying capital gains taxes, but taxed upon redemption. According to USABTC, the initiative can secure the financial future of the United States by fostering a "resilient and innovative" economic environment, leveraging the potential of Bitcoin while maintaining the centrality of the U.S. dollar. USABTC said that imposing an exit tax on the conversion of Bitcoin back into traditional currencies could provide a new source of revenue for the government, benefiting both federal and state finances. As currently planned, the implementation phase of the USABTC plan is expected to begin in 2025. If all legislative and regulatory approvals are obtained, the DEZ will be fully operational in 2026.