Rhode Island introduces bill to make small bitcoin transactions tax-free

The Rhode Island legislature has introduced a bill to exempt small transactions from income tax in an effort to reduce the tax burden associated with everyday Bitcoin use, according to CryptoBriefing. The proposed legislation would make Bitcoin sales and transactions of up to $5,000 per month tax-free and exempt up to $20,000 in annual transactions from income tax. The bill, which defines Bitcoin as a decentralized digital currency based on blockchain technology, aims to provide tax incentives that encourage residents and local businesses to use the cryptocurrency for daily transactions.