As the global economic system moves towards decentralized currencies, ensuring the protection of tax revenue becomes a significant concern for governments worldwide. Decentralized currencies, such as cryptocurrencies, present challenges for tax authorities due to their decentralized nature, pseudonymous transactions, and cross$-$border accessibility. Without proper mechanisms in place, there is a risk of tax evasion and revenue loss. Governments and tax authorities are exploring various strategies to address this issue, including regulatory frameworks, technological solutions, and international cooperation.

Objective Question:

In the context of protecting tax revenue in a global economic system shifting towards decentralized currencies, what approach focuses on enhancing international collaboration to address cross$-$border tax evasion and compliance challenges?

A$)$ Implementing blockchain technology for transparent tax tracking

B$)$ Establishing international taxation treaties

C$)$ Increasing tax enforcement measures on digital transactions

D$)$ Encouraging adoption of centralized digital currencies for taxation purposes