"Bitcoin: Taxed or Banned?" - The Minneapolis Fed's Bold Take on BTC
The Minneapolis Federal Reserve Bank recently stirred the crypto world with a thought-provoking report. In its October 17 statement, the Fed suggested that in order for governments to maintain permanent budget deficits, Bitcoin ($BTC) might need to be taxed or outright banned. But why?
According to the report, BTC creates a "balanced budget trap," pushing governments towards a financial dilemma. As they continue to spend beyond their revenues, a âpermanent primary deficitâ emerges â a term for governments intentionally running a negative balance for the foreseeable future.
With the US national debt soaring over $35.7 trillion, and annual deficits nearing $1.8 trillion, the Fed is eyeing digital assets like Bitcoin, which challenge their fiscal strategies.
Matthew Sigel, head of digital asset research at VanEck, commented:
"The government dreams of a âlegal banâ and extra taxes on Bitcoin to protect its debt as the âonly risk-free security.ââ
Could this be the next battleground between traditional finance and crypto
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