Bitcoin Updates: U.S. Suggests Using Bitcoin for Tax Payments to Dominate Worldwide Digital Economy

A new piece of legislation introduced in the U.S. House of Representatives, known as the "Bitcoin for America Act," proposes to let Americans use

for federal tax payments, with the collected digital currency being placed into a Strategic Bitcoin Reserve. Announced by Rep. Warren Davidson (R-OH) on November 16, 2025, the bill seeks to update the country’s financial systems by adopting digital assets and to establish the U.S. as a frontrunner in the global digital economy .

The legislation claims that Bitcoin’s capped supply of 21 million coins makes it a more reliable store of value over time than traditional fiat money, which can lose value due to inflation. By making it possible to pay taxes in

, the proposal aims to broaden the nation’s asset base and build a more robust financial system. “This bill will expand Americans’ options for tax payments and reinforce the government’s financial health,” Davidson said, .

The initiative coincides with increasing institutional interest in Bitcoin, as seen with Michael Saylor’s company,

. , Strategy purchased 8,178 BTC for $835.6 million, averaging $102,171 per coin, raising its total to 649,870 BTC valued at $48.37 billion. The company’s assertive buying, financed by equity and debt, demonstrates Bitcoin’s increasing role as a corporate treasury asset. In 2025, Strategy’s Bitcoin holdings yielded 27.8%, , a point used by supporters of the bill to advocate for nationwide adoption.

The Bitcoin for America Act is also a response to international competition. Reports indicate that countries such as China and Russia are accumulating Bitcoin, motivating U.S. lawmakers to act to maintain competitiveness. Davidson’s proposal offers a compromise between previous plans, such as Sen. Cynthia Lummis’s (R-WY) $80 billion Bitcoin acquisition proposal and Rep. Byron Donalds’s (R-FL) budget-neutral accumulation approach. By permitting voluntary tax payments in BTC, the bill

.

The Bitcoin Policy Institute, which backs the legislation,

that if just 1% of federal taxes were paid in Bitcoin from 2025 to 2030, the reserve could reach 2.6 million BTC—worth $230 billion at current prices. Nevertheless, the bill faces obstacles, such as regulatory challenges and Bitcoin’s recent price instability. The cryptocurrency has of $126,000, and was trading at $88,769 by late November.

While skeptics may doubt the feasibility of paying taxes with such a volatile asset, advocates argue that the bill’s voluntary approach and emphasis on long-term value help offset short-term risks. As the discussion continues, this proposal signals a broader movement toward integrating digital assets into national policy—potentially transforming the U.S. economic landscape in the digital era.