Cryptocurrency gets more recognition as the Biden administration puts forwards its new tax enforcement proposal. The proposal would require that any cryptocurrency transfer over $10,000 be tracked and reported to the Internal Revenue Service. The proposal also aims to at least double the workforce of the IRS over the next decade.
These plans were released as part of the US treasury report on Thursday. The report detailed the Biden administration’s proposal. It revealed that there were plans to invest around $80 billion into the US tax agency through 2031. The goal is to upgrade the system and improve compliance and revenue collections.
The US government has realized that regardless of the volatile nature of cryptocurrency, these digital assets are only going to increase and gain more importance in the years to come. They are already increasing their importance in the business aspect as well. The Treasury said in their report that “As with cash transactions, businesses that receive crypto assets with a fair market value of more than $10,000 would also be reported on”.
Many companies have already started accepting cryptocurrency with Elon Musk’s Tesla even accepting bitcoin as a valid source of payment for their cars. However, they soon went back on their decision touting environmental concerns. SpaceX is accepting Dogecoin for the launch of their DOGE-1 rocket. So it is safe to assume that cryptocurrencies are growing more important as time passes.
According to the US Treasury, cryptocurrency assets currently have a market capitalization of about $2 trillion. The Treasury’s report has also helped currencies like bitcoin and ether as well. Soon after the disclosure, bitcoin saw another 6% gain after it had just risen by 10%. However, the currency had just fallen by 30% recently as well. Ether saw an increase as well though the second-best cryptocurrency had fallen by 45% previously.
This new tracking and reporting could also help gain insight about U.S. companies that are extorted to pay hackers ransoms to regain control of their IT systems. Law enforcement agencies and other private cybersecurity experts have already voiced their opinions on how a lack of transparency about ransomware incidents leads to their continued rise in occurrence as well.
It seems that the rise of cryptocurrencies is inevitable as they gain more and more traction. It wouldn’t be weird if jobs started offering bitcoins as payment in the coming decade.