Bitcoin Payments Thrive in Low-Tax Zones, Strive’s Pierre Rochard Reveals

Bitcoin’s dream of becoming the world’s go-to currency keeps slamming into a brick wall, and according to Pierre Rochard, a senior executive at Bitcoin financial firm Strive, the culprit isn’t tech—it’s taxes. His latest take cuts through the noise: Bitcoin payments are booming in low-tax regions while high-tax areas like the US choke under regulatory weight, stunting adoption.

• Tax Roadblock: US policy taxes Bitcoin as property, slapping capital gains on every transaction.
• Regional Edge: Low-tax zones see faster Bitcoin payment growth, per Rochard’s data.
• Policy Fixes: Lawmakers are pushing exemptions for small Bitcoin transactions, but hurdles loom.

The Tax Trap Holding Bitcoin Back

In the US, Bitcoin isn’t treated as money by the IRS—it’s classified as property, a rule set back in 2014. What does this mean for users? Every time you spend Bitcoin, even on a $5 coffee, it’s a taxable event. Capital gains tax—basically a levy on the profit from selling an asset at a higher price than you bought it—kicks in. So, if you snagged Bitcoin at $10,000 and it’s now worth $60,000, that tiny purchase triggers a tax on the gain for the fraction of the coin spent. It’s like selling a sliver of your car every time you buy groceries—utterly absurd and a paperwork hell. Rochard, a veteran in Bitcoin treasury management and a board member at Strive, nails this as the biggest barrier to Bitcoin’s use as everyday cash. He’s got the receipts: data shows adoption for payments accelerates where taxes don’t strangle users at the checkout, as highlighted in a recent discussion on Bitcoin payment growth in low-tax regions.

This isn’t just a niche gripe. The Bitcoin Policy Institute has been sounding the alarm, arguing that taxing every micro-transaction guts Bitcoin’s potential as a day-to-day currency. Imagine the frustration—Satoshi Nakamoto’s 2009 vision of peer-to-peer cash gets drowned in red tape while outdated financial systems lumber on. It’s a travesty for anyone rooting for decentralization and financial freedom.

Low-Tax Havens Show the Way

Now, flip the script to low-tax regions or jurisdictions where capital gains don’t haunt every Bitcoin swap. Places like El Salvador—where Bitcoin is legal tender since 2021—Switzerland, or Malta aren’t just tax-friendly; they often have cultural openness or government backing for crypto. Merchants and everyday folks there are more likely to use Bitcoin for a quick meal or tip without fearing an audit. Rochard’s data backs this up: payment adoption in these zones outpaces high-tax areas by a wide margin. As he puts it with a sharp analogy:

“The best athlete can win against the worst athlete 100% of the time, if the best athlete plays. It drops to 0% if he doesn’t play and lets the weak athlete win. You have to play to win. Get in the arena.”

Translation? Bitcoin’s a champion ready to dominate, but tax policies are keeping it benched while lesser systems take the field. Low-tax zones are letting it play—and they’re reaping the rewards. But it’s not just about taxes; El Salvador, for instance, has government wallets and ATMs pushing usage, even if adoption isn’t universal yet. These regions are testbeds proving lighter burdens can spark real-world use.

Legislative Lifelines on the Horizon

Some US lawmakers are finally stepping up. Senator Cynthia Lummis from Wyoming, a staunch crypto ally, introduced a bill in July 2025 to exempt Bitcoin transactions of $300 or less from taxes, capping at $5,000 yearly. She’s also pushing to delay taxation on staking and mining rewards until coins are sold—a huge relief for network builders. Meanwhile, Rhode Island’s Senate Bill 2021 goes bolder, proposing state tax exemptions for Bitcoin transactions up to $20,000 annually, or $5,000 monthly. The idea is simple: stop taxing small purchases or trades so Bitcoin can feel like actual money, not a tax trap. Rhode Island even baked in a one-year review to weigh the impact—smart, given how uncharted this territory is.

These aren’t just feel-good proposals; they’re grounded in the reality that current rules are unsustainable. Jack Dorsey, founder of Square (now Block), doubled down after his company embraced Bitcoin payments, saying:

“We want BTC to be everyday money ASAP.”

Dorsey’s urgency mirrors what many feel—Bitcoin can’t wait. Public sentiment on platforms like X echoes this. Users admit they’d spend Bitcoin more if taxes weren’t a sword over their heads. One user, Mohammed Walid Gagi, pointed out that tax-free nations don’t fear Bitcoin, hinting at a deeper cultural divide alongside the financial one. But these bills face pushback—some policymakers worry about lost revenue or enabling illicit activity, and the political gridlock in Washington doesn’t scream “fast track.” Globally, places like the EU are also tinkering with crypto tax rules, though often with more scrutiny than support. Still, these US moves are a crack in the dam.

Devil’s Advocate: Taxes Aren’t the Only Culprit

Before we crown tax policy as the sole villain, let’s play devil’s advocate. Even in tax-free zones, Bitcoin payments haven’t exactly conquered the world. Look at El Salvador—despite legal tender status and zero taxes on Bitcoin transactions, many citizens still prefer cash or dollars due to distrust or lack of tech know-how. Cultural inertia is real; people don’t switch overnight from fiat they’ve used for decades to a volatile digital asset. Volatility itself is a beast—Bitcoin’s price swings can turn a $5 coffee into a $7 regret by tomorrow. Merchants hesitate too, wary of accepting a currency that might tank before they cash out.

Usability adds another layer of pain. Setting up wallets, understanding private keys, or using scaling solutions like the Lightning Network—which enables fast, cheap transactions—can baffle the average person. Lightning has made strides, cutting fees and wait times, but merchant support is spotty, and onboarding isn’t grandma-friendly. Some X users flagged this: taxes suck, sure, but even without them, Bitcoin’s everyday use lags. Are we overhyping policy fixes while ignoring these ground-level barriers? It’s a question worth chewing on.

Stablecoin Sideshow: A Slap to Decentralization

Then there’s the stablecoin distraction, and it’s got Bitcoin maximalists fuming. US officials are floating tax exemptions for these dollar-pegged tokens, seen as less volatile and more “practical” for payments. Bitcoin advocate Marty Bent didn’t mince words, calling the idea:

“nonsensical.”

Bent’s rage makes sense. Stablecoins, often tied to centralized issuers like Tether or Circle, mimic fiat more than they disrupt it. Giving them a regulatory pass while Bitcoin—the real rebel built on trustless decentralization—stays shackled feels like betrayal. Why coddle a system that plays nice with banks when Bitcoin’s ethos is to burn the old guard down? Stablecoins get traction partly due to corporate lobbying and their cozy fit with traditional finance, but for those of us championing effective accelerationism and disruption, this priority stinks of cowardice. It’s a bitter reminder that policy often lags behind principle.

Tech Fixes Meet Policy Walls

On the tech side, Bitcoin isn’t standing still. The Lightning Network, a layer-two solution, tackles scalability by processing transactions off-chain with near-instant speed and dirt-cheap fees. It’s a game-changer for micro-payments—think tipping online or buying that coffee without a hitch. But tech alone can’t win. Lightning’s adoption is growing but limited; many merchants don’t support it, and users still grapple with setup complexity. Plus, no amount of code can erase a tax form. Rochard’s data on low-tax zones proves policy shifts move the needle more than tech tweaks in some cases. It’s a harsh truth: Bitcoin’s disruptive power is coded in, but lawmakers hold the kill switch.

The Bigger Picture: Freedom vs. Friction

Zoom out, and this tax saga ties into the broader fight for financial freedom. Bitcoin was born to sidestep middlemen and empower individuals, a middle finger to legacy systems. Taxes aren’t just a nuisance—they’re a brake on progress, a deliberate or accidental tool to slow the race against fiat’s stranglehold. If we’re serious about effective accelerationism, pushing for rapid decentralized innovation, then unshackling Bitcoin from these chains is non-negotiable. Low-tax regions are a teaser of what’s possible, but the data isn’t universal; some still lag, hinting at a deeper puzzle. Legislative patches are a start, yet they’re fragmented, and the stablecoin detour risks diluting the mission. Will governments double down on control, or will public demand for crypto as everyday money force their hand? If Bitcoin is to be freedom’s currency, shouldn’t lawmakers free it first?

Key Takeaways and Burning Questions

• Why are taxes killing Bitcoin’s use as money?
  In the US, Bitcoin is taxed as property, meaning every transaction—even small ones—triggers capital gains tax, turning casual spending into a paperwork nightmare.
• Do low-tax regions really boost Bitcoin payments?
  Yes, Pierre Rochard’s data shows faster growth in low-tax areas like El Salvador, though some argue cultural and tech barriers still slow adoption there too.
• What’s being done to fix Bitcoin transaction taxes?
  Senator Cynthia Lummis’ bill targets exemptions for deals under $300, and Rhode Island proposes a $20,000 annual cap, aiming to make small Bitcoin use tax-free.
• Why the outrage over stablecoin tax breaks?
  Bitcoin maximalists like Marty Bent call it nonsense, arguing stablecoins—often centralized—undermine Bitcoin’s decentralized ethos while getting policy favors.
• Can tech like Lightning Network solve adoption issues?
  Partially—it cuts fees and speeds transactions, but limited merchant support and complex onboarding, plus tax burdens, keep everyday use out of reach.
• Are taxes the only barrier to Bitcoin as everyday cash?
  No, volatility, cultural distrust, and usability challenges with wallets or scaling tech also deter users, even in tax-free zones.
• Will tax exemptions guarantee Bitcoin’s mainstream rise?
  They’d help, especially for small purchases, but deeper issues like price swings and public trust mean policy alone isn’t a silver bullet.