Correct. Whether you chose to apply the Applicable Federal Rates, or some other rate of interest inputted or not, if you have received no income of any type in connection with lending the cryptocurrency to your cousin, there is nothing to report on your tax return. Moreover, it appears your cousin would not report anything either, at least with regard to the cryptocurrency that was lent with the intention that it would be returned at a later time. Based on your post, the cryptocurrency resembles a loan, and loans are not considered income because of the promise to repay in kind. However, if the arrangement with your cousin should change, then there could be tax ramifications. Additionally, should your cousin use or leverage the cryptocurrency to create income, then your cousin would need to report that income.
@Love2Bike
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