Bitcoin Policy Institute Launches Interactive US Tax Payment Model in Support of Bitcoin For America Act

BPI backs the Bitcoin for America Act, which would let US citizens pay taxes in Bitcoin for a national reserve. Their new model projects trillions in potential fiscal benefits through 2050.

Tristan Greene By Tristan Greene Marco T. Lanz Editor Marco T. Lanz Updated 2 mins read
Bitcoin Policy Institute Launches Interactive US Tax Payment Model in Support of Bitcoin For America Act

Key Notes

  • The Bitcoin for America Act aims to codify a national Bitcoin reserve while allowing Americans to remit federal taxes using cryptocurrency.
  • BPI's tax payment model projects net advantages ranging from $34.6 trillion to $1.11 quadrillion depending on adoption rates and timeframes.
  • The bill frames Bitcoin accumulation as a national security priority, citing competition with China and Russia in strategic crypto reserves.

Nonpartisan crypto policy think tank The Bitcoin Policy Institute has offered its official endorsement for the Bitcoin for America Act of 2025, which would allow citizens to pay taxes with Bitcoin BTC $87 867 24h volatility: 2.8% Market cap: $1.75 T Vol. 24h: $100.25 B and direct those funds to the national Bitcoin reserve.

BPI also launched a new financial Bitcoin Tax Payment Model tool in support of the act that calculates the financial impact Bitcoin tax remittances would have on the federal Bitcoin reserve. According to a Nov. 20 press release, the model offers policymakers and the public “a data-driven illustration of the potential fiscal benefits of long-term Bitcoin accumulation.”

Bitcoin for America Act Potential Savings

The Bitcoin for America Act was introduced to the US House of Representatives on Nov. 20 by Ohio congressman Warren Davidson. The bill lays out the case for codifying the Bitcoin reserve and allowing Americans to pay taxes via Bitcoin by pointing out that cryptocurrency has proven inflation-proof. It also frames the reserve as a matter of state security.

According to the bill, the US risks falling behind nations such as China and Russia in the strategic race to accumulate a cryptocurrency reserve. Passage of the bill, meanwhile, would “safeguard national security by securing a stake in a decentralized, geopolitically neutral asset immune to sanctions or external interference.”

BPI’s Bitcoin Tax Payment Model displays the hypothetical earnings that would result from a specific percentage of US federal taxes being paid in Bitcoin. The tool allows users to tweak several parameters including the approximate percentage of taxes to be paid in Bitcoin (from 0 to 10%), the time period ranging retroactively from 2020 to predictions as far as 2050, expected Bitcoin and tax revenue yearly growth rates, and the types of tax revenue considered.

With the options maxed out and imagining a hypothetical scenario where 10% of citizens began paying all eligible federal taxes in Bitcoin from the year 2020 all the way through 2050, for example, the tool predicts a net advantage (Bitcoin reserve with growth versus a cash reserve) of $1.11 quadrillion.

A more potentially viable configuration with just 1% of taxpayers remitting in Bitcoin shows that, according to the model, the net advantage would yield $34.6 trillion from 2025 through 2050, enough to wipe out the current US deficit and public debt.

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Tristan Greene

Tristan is a technology journalist and editorial leader with 8 years of experience covering science, deep tech, finance, politics, and business. Before joining Coinspeaker, he wrote for Cointelegraph and TNW.

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