North Carolina introduces bill to allow the use of crypto to pay taxes

Northern Carolina legislators proposed a bill that would allow citizens to use cryptographic assets to carry out economic transactions, including tax payments.

In a bill posted by the state representative, Neal Jackson, Bill 920 of the Chamber aims to allow the use of cryptographic active For tax payments as well as other economic transactions. If it were promulgated, the bill would automatically become the North Carolina Digital Asset Freedom Act.

“The General Assembly notes that digital assets, when they are properly regulated and aligned with the principles of decentralization, security and resilience, can be a valid and stable support for economic exchange,” said the bill.

According to North Carolina draftAll cryptographic assets cannot be accepted for tax payments and other economic transactions under the bill. The digital assets in question must meet a list of certain requirements stipulated in the project in order to be considered as eligible.

One of the main requirements described in the project is the fact that the cryptographic asset must have a current market capitalization of at least $ 750 billion and a daily negotiation volume of more than $ 10 billion. The assets must also be listed on several regulated United States trade.

By virtue of this only requirement, the only major cryptocurrency which succeeded in this threshold is bitcoin (BTC), with a market capitalization of 1.6 billion of dollars and a daily negotiation volume which amounts to $ 45 billion.

Even the second largest cryptocurrency by market capitalization, Ethereum (Ethn), does not meet the requirements set by the invoice to be eligible for tax payments. ETH’s market capitalization is currently $ 188 billion, while its daily commercial volume is $ 20 billion.

Despite this fact, it is always possible that if the bill arrives, other cryptocurrencies have accumulated much greater market capitalization and a daily commercial volume.

Aside from the liquidity and the depth of the guaranteed market, the North Carolina bill also forced eligible digital assets which had to operate in an open market and without authorization for at least 10 years without external intervention or state support. In addition, the asset should also have been launched without pre-mininginitiate allowances or control of central authority.

Not only does that, the token should not count on a single entity, a foundation or a small group of initiates for its current operation or governance. He must also have been considered a product and not a safety token by American regulators, such as the United States Commission of securities and the Commodity Futures Trading Commission.

As before reported By crypto.News, North Carolina recently proposed two bills which would allow an independent investment authority to invest up to 5% of pension funds in digital assets, including cryptocurrencies, stablescoins and NFT.