The Cato Institute, a prominent US-based think tank, has urged the government to abolish capital gains taxes on cryptocurrencies such as Bitcoin to foster greater competition in the currency market. Nicholas Anthony, a policy scholar at the institute, highlighted that the existing capital gains tax (CGT) discourages the use of alternative currencies by creating burdensome reporting requirements and incentivizing long-term holding. He noted that even simple transactions, like buying a cup of coffee with Bitcoin, can lead to extensive tax filings, complicating everyday use of digital currencies. Anthony suggested that removing CGT entirely or at least for crypto transactions could alleviate this burden, allowing competition to determine the best currency for transactions. According to a 2025 survey by the National Cryptocurrency Association, 39% of US crypto holders reported using digital currencies for goods and services. Furthermore, research indicates that approximately 11,000 merchants worldwide accept Bitcoin as payment. Simplifying the tax code could significantly reduce stress for taxpayers and promote a more competitive economy.