Cryptocurrency: A Path to Transparency

By Andrew S. Jacobson, Financial Correspondent

Immigration and taxation, some of the most vocalized points of contention in the last [election] cycle, are still at the forefront of impeding America’s path to progress. This week, while the Big Six killed the proposed Border Adjustment Tax as they worked their way through the nuances of tax reform, 10 unauthorized immigrants also died in the back of a truck while being smuggled into the United States in a Walmart parking lot in San Antonio. What could’ve prevented these seemingly unrelated events from occurring? The adoption of Cryptocurrency, in lieu of fiat money [or physical currency], and an open border working arrangement, such as that resulting from the Schengen Agreement, for North American citizens. 

According to the Department of Homeland Security, as of January 2012 there were an estimated 11.4 million unauthorized immigrants living in the United States. As such, fifty-nine percent of unauthorized immigrants were from Mexico. That withstanding, I believe that the problem is not the immigration itself, which is invariably happening, but the lack of documentation. President Trump has been very clear in affirming his intention to restore rule of law to our borders - and I couldn’t agree more. We must amend the law to work to our advantage. 

Immigrants come to the United States for a variety of reasons. According to OneAmerica, some of the primary drivers for migration are poverty and economic hardship. Furthermore, “in the absence of a livable wage, access to credit, insurance, or social welfare benefits, the value of migration is greater than its hardship or potential for exploitation”. Bringing these concepts full circle, the tragedy which occurred in San Antonio earlier this week is indicative of said findings. The ten unauthorized individuals who perished on that truck saw the opportunity to come and work in the United States as outweighing the risks associated. Immigrants will come, with or without our permission. Who’s to say that by taxing every dollar earned, as it’s earned, in a shift to Cryptocurrency, and opening our boarders to our North American neighbors, in Canada and Mexico, for work wouldn’t sustain rule of law, if documented properly? The benefits to such a revolutionary shift are paramount. 

First, by adopting Cryptocurrency we eliminate tracking counterfeit currency, an excess of resources squandered upon tax collection and provide an immediate source of income for the United States. Second, we can use this currency adoption to legitimize a new tax base - for whom we aren’t responsible for providing benefits such as Social Security or Medicare, which are enormously costly programs reserved for citizens. Third, and perhaps most importantly, is the potential for the restoration of the middle class. 

Business owners have been penalized by the previous administration through the increased taxation vis-a-vis the Affordable Care Act (ACA), while seeing shrinking margins for domestic businesses due to increases in labor-related costs. Prior to the ACA, less than ten percent of the population was uninsured. Now, the remaining ninety percent of the country floats the costs of providing benefits to persons previously without insurance. By opening our borders, as the European Union has, we would enable our labor costs to become dramatically reduced in increasingly low margin industries, which our citizens generally aren’t interested in performing now. Furthermore, with a strong dollar we can increase global footprint, by providing more goods and services most competitively, outside of the United States. Summarily, Cryptocurrency is the answer to our immigration and taxation quandaries because its traceable, taxable, and enables our North American neighbors to contribute to a system which they’re already participating in - transparently.