Here's the case, I don't know if my friends have seen this tweet. It mainly talks about how on BASE, some stores in Japan can directly use USDC for payment, and the other party can settle in Japanese yen, which is equivalent to skipping OTC and directly using USDC for payment. Essentially, it's similar to a U-card, but the problem is here! Does USDC consumption need to be taxed? The answer is negative. Although there may be taxes incurred, the fluctuation of USDC is very small and can be ignored, so the taxes paid in USDC can be ignored. But how did USDC come about? If the income is generated from trading, then this income is subject to taxation. For example, if you buy BTC at a price of $50000 and sell it at a price of $100000, the funds sold will be converted into USDC, and this process will ultimately be subject to taxation. But if you directly hold USDC or trade USDC bought in Japanese yen, there is no need to pay taxes, and the BASE APP itself does not require KYC and AML, which means that decentralized trading has almost zero tax burden in Japan (there is a gray area in regulatory visibility). Moreover, the BASE APP itself is not based on VIAS and MasterCard, and there is almost no wear and tear during payment and exchange. Japanese tax residents need to weigh its use, after all, if paid in USDC, there is also confirmation of whether the annual miscellaneous income exceeds 200000 yen.