“Everyday Money” – Jack Dorsey Wants Bitcoin to Finally Live up to its Promise

Jack Dorsey is once again making headlines for his push toward mainstream Bitcoin adoption. 

The announcement came as Square revealed that businesses using its checkout and point-of-sale systems can now accept Bitcoin payments directly. Dorsey took the opportunity to highlight what he sees as a key barrier to everyday crypto use: the capital gains tax applied to even the smallest BTC transactions in the United States.

He pointed to the need for a de minimis tax exemption – a rule that would make small payments tax-free. This idea isn’t new: Wyoming Senator Cynthia Lummis proposed a bill earlier this year that would exempt Bitcoin transactions of up to $300, with a yearly limit of $5,000. The goal is to make it easier for people to use Bitcoin for ordinary purchases, like a cup of coffee or a bus ticket, without worrying about tax paperwork.

Under current U.S. law, every time someone spends Bitcoin, they must calculate and report capital gains or losses, even for a few dollars. That complexity has limited Bitcoin’s practical use as a payment method, despite its growing popularity as a long-term investment or “store of value.”

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Other nations have already taken steps in this direction. Countries such as UAE, Germany and Portugal  offer tax-friendly environments for crypto transactions, attracting startups and investment that might otherwise have gone to the United States.

Supporters of Bitcoin hope that easing tax rules could help the asset fulfill one of its original promises – becoming a decentralized, peer-to-peer form of money that’s as practical for daily use as it is for storing wealth.