Congressman Matt Gaetz (R-Fla.) has put forward a fresh legislative proposal calling for a law that would compel the U.S. Secretary of the Treasury to establish a program enabling federal income taxes to be settled using Bitcoin (BTC).

In a released statement, Gaetz highlighted that the legislation aims to modernize the U.S. tax system. The lawmaker emphasized that allowing taxpayers to fulfill their governmental obligations using the predominant cryptocurrency will foster innovation, streamline processes, and provide enhanced flexibility for American citizens.

Describing the initiative as a decisive stride towards a future where digital currencies assume a pivotal role in the financial landscape, the proposed bill states, “The Secretary shall devise and implement a mechanism facilitating the payment of any tax levied on an individual under this title using Bitcoin.”

This move comes in the wake of Gaetz’s participation in the second inauguration of El Salvador president Nayib Bukele, who notably designated Bitcoin as a legal tender, making El Salvador the world’s first nation to do so. Gaetz’s office underscored that the congressman witnessed firsthand how Bitcoin has contributed to fostering financial stability and encouraging job creation in El Salvador.

In a related development, Bukele announced in March that El Salvador would persist in purchasing Bitcoin daily until acquiring it with fiat currencies becomes economically unfeasible. As reported by El Salvador’s Bitcoin Office, the country presently holds 5,793.76 BTC valued at over $353 million.

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