Although the leading cryptocurrency Bitcoin started the week on the rise, it has approached the $ 68,000 level again in recent hours.
While BTC is facing a decline from its high of $69,500, it also faced unexpected criticism.
At this point, the Minneapolis FED argued that governments should ban or tax Bitcoin.
In a recent article, the Minneapolis FED claimed that Bitcoin should be taxed or banned so that governments can maintain permanent budget deficits.
The Minneapolis Fed has argued that Bitcoin creates a “balanced budget trap,” an alternative situation in which the government is forced to balance its budget, while claiming that Bitcoin limits the ability of governments to implement economic policies.
At this point, researchers warn that Bitcoin could force governments to balance their budgets, and state that Bitcoin should be banned or taxed to solve this problem.
Minneapolis Federal Reserve researchers say they have identified Bitcoin as a fixed-supply private asset with no real source claims, and as a result, it should be taxed or banned to support government deficit policies.
While this report received criticism, VanEck Head of Digital Assets Research Matthew Sigel said that the Minneapolis FED joins the European Central Bank (ECB) on Bitcoin.
ECB advisor Jürgen Schaaf also called for Bitcoin to be restricted in a recent X post.
*This is not investment advice.
