There is a strong reason behind the recent wave of bitcoin adoption among the world’s least stable and poorest countries. Bitcoin benefits the underprivileged and disadvantaged unequally because it gives them access to an open global financial network with a predictable policy and low barriers to access. Although the United States has attracted a significant amount of interest and investment in Bitcoin from the beginning, it is safe to say that Native Americans know very little beyond what the mainstream media headlines and FUDsters say.
While this goes against the general passion of the United States for technological advancement, it is understandable. As the home of the world’s reserve currency, the United States stands uniquely in providing its components with extensive access to basic financial services and stable infrastructure, which rarely sees the need to transfer money outside of that ecosystem. As a result, the average American feels no pressure to go beyond the pseudo-decentralized platform and the legacy bank he has been using all his life. Most Americans do not default as frequently as they did in Argentina. Most Americans do not face the high fees and risk associated with sending remittances through Legacy International Money Transfer Services, such as Western Union. Most Americans have not been disappointed with a falling currency like Zimbabwe or Venezuela. And most Americans don’t know how they feel when they see the currency they use regularly, only their citizens are paid, not their country. This makes it understandable that the US media and unsuspecting Americans see Bitcoin as just a speculative investment. They simply don’t understand its deeper purpose because the U.S. financial ecosystem has yet to give them a reason.
That may change soon. If the effects of unprecedented stimulus and spending, negative real incomes, rising inflation, rising institutional distrust, and alarmingly high traditional traditional asset prices are not enough, the recently proposed $ 3.5 trillion budget reconciliation bill could give Americans reason to consider alternative financial practices. Not for what you think. While remarkable in size and scope, the Budget Reconciliation Bill also proposes an unprecedented tax compliance system that will dramatically change the financial landscape of many Americans. As currently written, the bill identifies the need for banks and other financial third parties to report annual inflows and outflows of internal revenue services to all accounts valued at $ 600 or more, or at least $ 600. While these measures are probably intended to reduce tax evasion by wealthy individuals, they are certainly not their luck, especially as small businesses and everyday individuals will be affected by the second and third orders.
Although many Americans currently enjoy reliable and accessible banking services, the proposed methods of enforcing tax compliance will have a dramatic impact on their ability to work with banks, threatening their ability to provide affordable goods and services to those struggling with access. Is. No need for a detailed report will no doubt introduce a large amount of extra red tape in the already under pressure banking sector. Banks and institutions will be forced to pay higher operating costs on consumers, which will make it more difficult to access basic financial services in the future.
Most importantly, the approval would give the IRS authorities the power to collect information on every American bank account that costs less than 600. Many Americans are probably not very interested in banks reporting their account data checked by the IRS. And while this intrusion into the financial privacy of U.S. citizens is morally questionable, it also creates widespread security risks for the average American citizen. Big organizations are not exactly known for keeping information safe from malicious cyber actors. Even those who have the world’s top technology talent have trouble keeping their data secure. How safe can we expect the public sector to be? There are many examples of government violations, but don’t forget about the 2015 incident where 700,000 IRS accounts were compromised.
In the end, whatever is included in the 2021 Budget Reconciliation Bill, the mere presence of such political support for fiscal oversight and irresponsible fiscal policy illuminates how desperate we are to perpetuate a system that seems to have reached a breaking point. If the U.S. continues to embrace the elements of modern financial theory – additional spending, relentless stimulus and higher taxes – it will continue to reduce taxable activity, as well as the prospects for revenue collection to support the policies that initially introduced these problems. Do and let American citizens put themselves in difficult situations. Their incentives to find a better way would combine them with similar situations in other parts of the world. As many around the world have already discovered, Bitcoin is an escape valve in a system that has begun to show some cracks. Adoption is just beginning.
This is a guest post by Drew Borinstein. The views expressed do not fully reflect their own and BTC Inc.’s Bitcoin Magazine.