The proposal put forward by USABTC calls for Bitcoin to be traded tax-free and for savings to be exchanged with taxes paid only on returns. This initiative aims to revitalize the US economy and ensure the global dominance of the dollar.

USABTC aims to create a zone where Bitcoin can be traded tax-free and thus attract investors. Within this zone, Bitcoin transactions can be carried out without capital gains tax, but a tax will be imposed on the conversion of Bitcoins to fiat money.

According to USABTC, this model will secure the financial future of the United States and ensure a “resilient and innovative” economic environment. Considering Bitcoin’s role in the global financial system, this initiative could encourage the strengthening of the country’s digital financial infrastructure.

Bitcoin’s regulatory implications and role internationally have forced policymakers in the US to re-evaluate traditional financial strategies. USABTC states that a direct government purchase of Bitcoin is problematic both in terms of feasibility and politics.

Therefore, he proposes creating a DEZ, where Bitcoin transactions can be made tax-free, but taxes will be applied upon conversion. This approach can promote wealth growth and attract investors in a regulated environment.

The proposed DEZ plans to create a Bitcoin system backed by a layer-2 solution for efficient and secure transactions. This system could provide a potential revenue stream for both federal and state treasuries.

The exit tax will be applied during the conversion of Bitcoin into fiat currencies, which could offer the government a new source of revenue. Thus, economic benefits can be achieved at both the federal and state levels.

The implementation phases of the plan are designed to start in 2025. In the first phase, the President will need to issue an executive directive authorizing the use of the Exchange Stabilization Fund (ESF).

The ESF functions as an instrument of the US Treasury and was created by the Gold Reserve Act of 1934. In the following stages, the preparation of legal opinions will be supported by legislative studies and broad public information.

The Internal Revenue Service (IRS) will play a collaborative role to approve the proposed tax framework and establish a robust legal framework.

USABTC states that if this initiative is successful, the USA will have taken an important step in the field of digital economy and this effort will reinforce the country’s global financial leadership. It also promises to legally secure the rights of the cryptocurrency community by providing protection against excessive government interference.

This plan could be fully operational by 2026 once all legislative and regulatory approvals are received. USABTC’s proposal aims to increase Bitcoin’s impact on the US economy and enable it to play a broader role within the digital financial ecosystem.