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Experts Witness Says to Congress to Reduce Taxes on Cryptocurrencies Used for Purchased

· 20 Jul 2018 in Cryptocurrency News, Home
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

We already know that the House Financial Services Committee held a hearing known as ‘The Future of Money: Digital Currency.’ Important witnesses spoke at the house, including Dr. Rodney J. Garret, Maxwell C., Mary Pellish Chair, Dr. Norbert J. Michel, Esward S. Prasad, and many others.  

But it is important to mark that Norbert Michel, Director of the Centre for Data Analysis at The Heritage Foundation, said that cryptocurrencies have several benefits and technological advancements in general.

Norbert Michel Positive on Cryptocurrencies

Mr. Michel explained that the US government shouldn’t interfere in the cryptocurrency market and make the new technology illegal because criminals are using it. “Yes, it is true that criminals have used Bitcoin,” he said. “But criminals have also used airplanes, computers and automobiles. We shouldn’t criminalize any of those instruments simply because criminals use them.”

But later he commented on cryptocurrencies saying that the US government should eliminate capital gains on purchases made with cryptocurrencies:

“Competitive processes should take place so that businesses and consumers can discover the best means of payment. The fact that cryptocurrency is a now option for making payments, though it is in its infant stages, should be embraced.”

Additionally, he said that the federal government shouldn’t tilt the playing field, but instead, it should treat cryptocurrencies in a neutral way.

“This means it should not bestow any particular legal advantage on any particular alternative form of money, and that it should remove all legal advantage on any particular alternative form of money, and that it should remove all legal barriers o using alternative forms of money,” explained Mr. Michel. “Removing capital gains taxes from purchases with alternative currencies, including cryptocurrencies and foreign currencies, would be a major step toward leveling that playing field between alternative forms of payment.”

Of course, there were other Representatives that commented in a very negative way about virtual currencies. Indeed, Brad Sherman called for an outright ban in cryptocurrencies. Of course, as we wrote at UseTheBitcoin, Mr. Sherman is receiving funds for his political career from traditional financial companies in the United States.

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