On your 2023 federal tax return, you must answer "Yes" or "No" to a digital asset question:
At any time during the tax year, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?
What is Digital Currency?
For U.S. tax purposes, digital assets are considered property, not currency.
A digital asset is stored electronically and can be bought, sold, owned, transferred or traded.
The tax definition of a digital asset is any digital representation of value recorded on a cryptographically secured, distributed ledger (blockchain) or similar technology (Infrastructure Investment and Jobs Act)
For full instructions and FAQ's regarding Digital Currency, please see: Digital assets | Internal Revenue Service