US government worried digital currencies lead to tax avoidance

The Treasury Inspector General for Tax Administration (TIGTA) published a document this fall that reviewed the growing usage of Bitcoin and other digital currencies in the private sector. While acknowledging there are benefits to “virtual currencies” including lower transaction fees and faster transfer of funds for services provided, the government is deeply concerned that virtual currencies are also popular because the identity of the parties involved may be anonymous, leading to a greater possibility of their use in illegal transactions. Read more: