Robert F. Kennedy Jr., a US Democratic presidential candidate, has expressed his support for a tax exemption on Bitcoin (BTC) transactions. Additionally, he has unveiled a plan to partially back the US dollar with “real, finite assets,” such as Bitcoin.
Kennedy mentioned that, like several other countries such as Singapore, Germany, Switzerland, Puerto Rico, and Portugal, his proposed Kennedy administration would exempt the conversion of Bitcoin to the US dollar from capital gains taxes.
While acknowledging that there may be downsides to allowing tax-free conversion of Bitcoin to fiat currency, Kennedy believes that the advantages of such a policy would outweigh the disadvantages. Some of the benefits he highlighted include fostering innovation and encouraging investment, ensuring the privacy of citizens, and providing incentives for businesses and tech ventures to grow within the United States instead of seeking opportunities abroad in countries like Singapore, Switzerland, Germany, or Portugal.
As a Democratic party outsider, Kennedy’s stance on supporting Bitcoin and advocating for a tax exemption could generate interest and discussion within the broader cryptocurrency community and may influence the ongoing debate surrounding digital assets’ regulation and taxation in the United States.
Backing the dollar with Bitcoin
Robert F. Kennedy Jr., the US Democratic presidential candidate and nephew of former US President John F. Kennedy, reiterated his support for backing the US dollar and US Treasury bills with hard assets, which include Bitcoin.
According to Kennedy, if he were to assume the presidency, his administration would take steps to back the US dollar with tangible and limited resources such as gold, silver, platinum, and Bitcoin. By incorporating Bitcoin into the list of assets, he emphasized its unique properties as “the world’s hardest liquid asset.” This likely refers to Bitcoin’s combination of being a highly durable store of value, its finite supply due to its fixed maximum cap, and its relatively easy transferability or liquidity.
The proposal to back the US dollar with such hard assets is aimed at enhancing the stability and intrinsic value of the currency. By tying it to finite resources, Kennedy seeks to strengthen confidence in the US dollar and potentially mitigate the risks associated with traditional fiat currencies.
The candidate expressed a plan to begin on a “very, very small” scale, allocating approximately 1% of backing for Treasury bills using assets such as gold, silver, platinum, or Bitcoin.
He further explained that depending on the results and performance, this allocation would be increased annually.
Kennedy emphasized that supporting dollars and U.S. debt obligations with tangible assets could play a crucial role in revitalizing the dollar’s strength, curbing inflation, and paving the way for a new era of financial stability, peace, and prosperity in America.
Pro-Bitcoin presidential candidate
In financial documents from June, it was disclosed that Robert F. Kennedy is a Bitcoin holder, with holdings between $100,001 and $250,000 worth of BTC in a brokerage account.
Furthermore, he has expressed positive views about Bitcoin, referring to it as a “bulwark against totalitarianism and the manipulation of our money supply” on previous occasions.
