Backing the dollar with bitcoin and giving crypto a tax…

Bitcoin and other cryptocurrencies have a great future. They haven’t reached their full potential yet, but they definitely will. I draw such conclusions not only from the current situation in the markets or from the systematic growth in demand for crypto, which is indeed observed. But also, by observing the positive changes in the attitude of the world’s elites towards it.

Both financial, which already regularly report new projects like the launch of a national bitcoin exchange in Indonesia in July-2023 (confirmed by the local regulator) or the receipt of a licence to provide cryptocurrency services by a division of the French Societe Generale (SG Forge) from the French Financial Markets Authority (AMF), which cannot but please. But also, political ones, because it is on them that legislative and regulatory decisions depend, which will allow the development of the crypto industry.

The speech of Democratic Party member and US presidential candidate Robert Francis Kennedy Jr. (nephew of the legendary 35th U.S. President John Kennedy) at an event organised by Heal-the-Divide PAC was highly inspiring. The politician openly stated that he was willing to take steps to back the U.S. national currency with Bitcoin, and this would support the dollar’s status as an international reserve currency.

Kennedy called Bitcoin a hard currency and put it on par with silver, gold, platinum, emphasising that such an approach would help “restore the strength of the dollar, rein in inflation and usher in a new era of financial stability, peace and prosperity for the country”. This will provide at least some of the U.S. debt obligations (treasuries) with hard assets, increasing confidence in them.

Not only has the Democrat recognised the power of bitcoin and publicly reiterated the thesis of many crypto-activists, but he has also made it clear that he is ready to make crypto-assets a tool of public policy. This is a serious acknowledgement, which could translate into a large-scale project centered on the U.S. and the world’s key currency, the dollar.

The second important thesis of Robert F. Kennedy concerns taxation. He announced that his administration would “exempt the conversion of Bitcoins to the U.S. dollars from capital gains taxes.” In May, the American authorities had already abandoned the idea of imposing an additional 30% tax on industrial mining of cryptocurrencies, and now they are ready to liberalise the capital gains part. That will undoubtedly have a positive impact on the market, which in the U.S. is now on the brink and is very much hoping for positive changes. It is known that many have even considered the option of migration from the U.S. And so now Kennedy’s statement will be received very well.

By the way, the presidential candidate does not just throw promises, but justifies them. It can be seen that the politician follows the situation in the industry and sentiments. Since he says that tax breaks will allow the development of jobs in the U.S. and not in Singapore, Switzerland, Germany and Portugal. He is aware about the negative sentiment in cryptocurrency circles.

At the moment, there are few options left in the United States that minimise taxation and do not violate current legislation. The most common are transactions through people’s retirement accounts and working through the Puerto Rico, where corporations can enjoy a favourable tax rate of 4% and ordinary investors can work as qualified residents and receive a tax exemption. However, these options are not suitable for everyone. Therefore, crypto investors are increasingly looking at the possibility of working in Singapore, Portugal, Malta, and in some cases Hong Kong. There, the issue of taxation is solved more easily.

Robert F. Kennedy repeated his old thesis that cryptocurrencies give people freedom, freedom of choice and will. Something he spoke about at the conference in Miami (USA) in May 2023, when he recalled the story of truckers’ strikes in Canada. People weren’t breaking local laws, but the authorities pressed on by blocking their personal bank accounts to subjugate them – they were deprived of the ability to support their families and pay their mortgages. In fact, these are financial repressions that were applied at the state level.This is essentially financial repression that was applied at the state level. What could not have been realised with the adequate development of cryptocurrencies that can protect citizens and their freedom.

Freedom of money is also freedom of speech and expression of will. And these are cryptocurrencies that can provide all this, but not fiat currencies, total financial monitoring and requirements for classical financial institutions.

All of this has been talked about many times at crypto conferences and conventions. It is encouraging that this has finally been heard and realised by politicians at the highest level, and, most importantly, that they are not just talking, but are ready to act decisively.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.