The Federal Reserve Bank of Minneapolis has proposed a tax or ban on bitcoin to address government deficits

A new research report from the Federal Reserve Bank of Minneapolis has raised concerns about the impact of bitcoin on government fiscal policy, arguing that it may need to be taxed or banned by law to help governments manage deficits. The paper argues that bitcoin complicates efforts to maintain permanent government deficits, especially in an economy dependent on nominal debt. It points out that bitcoin creates a so-called "balanced budget trap" that forces governments to balance their budgets.