Virtual Currency As Real Currency

Authors

• Jeffrey A. Maine, University of Maine School of Law

Document Type

Article

Publication Date

2025

Abstract

Convertible virtual currency is increasingly equated with the notion of real currency. Indeed, the increased acceptance of virtual currency as a payment method among retailers and consumers, the evolution of new types of virtual currency that alleviate price volatility, and the recent expansion of foreign country initiatives confirm the strong trajectory toward virtual currency’s function as a transactional currency. Yet, the tax system continues to classify all forms of virtual currency as “property,” and not “currency,” which results in immediate taxation every time someone buys something with virtual currency. This Article argues that the adopted tax treatment of virtual currency creates inequities, inefficiencies, and administrative burdens that could be remedied if a de minimis tax exemption were available like the one currently applicable to personal purchases using foreign currency.

Comments

Jeffrey Maine, Virtual Currency as Real Currency, 17 Drexel L. Rev. 763 (2025).

Publication Title

Drexel Law Review

Volume

17

Issue

3

Article Number

1172

First Page

763

Suggested Bluebook Citation

Jeffrey Maine, Virtual Currency as Real Currency, 17 Drexel L. Rev. 763 (2025).