Powell says the Federal Reserve is not allowed to own Bitcoin and does not consider including Bitcoin on its balance sheet. How should this be interpreted?
Virtual currency does not possess unlimited legal tender status, nor does it have an issuing entity, which means it cannot collect seigniorage. The value of virtual currency comes from its utility value, which is a reliable and real-time verifiable payment network that does not rely on third parties for transactions. Its additional value is that wealth obtained through gray or illegal means can be transferred via virtual currency without going through official channels.
Which government would support something that fundamentally conflicts with its own interests? First, it cannot collect seigniorage; second, it cannot be effectively regulated and can conveniently transfer funds globally? Not to mention incorporating virtual currency into the balance sheet; some even believe Bitcoin will become a reserve currency. This is akin to the Song Dynasty sending warmth to the heroes of Liangshan or the salt tax inspector providing high-temperature subsidies to those engaged in the illicit salt trade. It does not interfere with your trading of coins, but please do not come up with violations of basic common sense, as this makes virtual currency appear more like a scam.
According to the BitcoinTreasuries website's statistics on the Bitcoin holdings of major entities worldwide, the U.S. government currently holds the most Bitcoin. Among these governments, those at the top have not purchased Bitcoin, most of which were confiscated from criminals. Their holdings were all confiscated from offenders.
United States: Holds 213,246 Bitcoins
China: Holds 190,000 Bitcoins
United Kingdom: Holds 61,000 Bitcoins
The U.S. government confiscated over 200,000 Bitcoins through three different law enforcement actions between November 2020 and 2022. These Bitcoins are mainly stored in encrypted and password-protected offline cold wallets controlled by the U.S. Department of Justice, IRS, or other agencies. China confiscated 190,000 Bitcoins in the PlusToken Ponzi scheme case in 2020.
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