Zero-Fee Payments and Tax Reform

Block, led by Jack Dorsey, introduced “Bitcoin is Everyday Money” on November 19, 2023, in the US, urging tax reforms and zero-fee Bitcoin payments for merchants.

This move seeks to simplify Bitcoin transactions, encouraging retail adoption by reducing costs and regulatory complexities for small payments, potentially boosting merchant crypto use nationwide.

Block’s Zero-Fee Innovation and Legislative Goals in the US

The initiative paves the way for a broader adoption of Bitcoin in retail payments, countering existing tax burdens. Merchants using Square can offer flexible settlement options, including direct Bitcoin acceptance or fiat conversion. Jack Dorsey, Co-founder/CEO of Block, stated, “A de minimis tax exemption on small Bitcoin transactions, aiming to make everyday use more practical for Americans.”

Market reactions include optimism among Bitcoin enthusiasts and Square users, with Miles Suter noting the ease of Bitcoin payments compared to cards. No official US regulatory changes have materialized yet, but the community sentiment around a tax-free threshold is positive.

Did you know? Past initiatives like the Virtual Currency Tax Fairness Act also sought crypto tax thresholds, but Block’s approach is unique with direct integration and retail participation.

Market Data and Future Insights

Did you know? Past initiatives like the Virtual Currency Tax Fairness Act also sought crypto tax thresholds, but Block’s approach is unique with direct integration and retail participation.

CoinMarketCap data shows Bitcoin (BTC) trading at $91,874.36 with a market cap of formatNumber(1832933910213.30, 2), asserting dominance at 58.44%. Current trading volume dipped by 28.46%, yet a slight 1.62% uptick is seen over 24 hours. Recent declines span up to 90 days, but regulatory strides tied to tax reforms may influence future price trends.

Insights from the Coincu research team suggest Block’s advocacy could potentially reshape crypto tax norms in the US, prompting similar measures globally. Adoption-focused initiatives often reflect positively on Bitcoin’s market practices and regulatory landscape, encouraging further institutional and retail engagement.