Odaily Planet Daily News: A new research report released by the Federal Reserve Bank of Minneapolis recently 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 the government manage the deficit. The paper argues that Bitcoin complicates efforts to maintain a permanent government deficit, especially in an economy that relies on nominal debt. It points out that Bitcoin creates a so-called "balanced budget trap" that forces the government to balance its budget. The paper has been sharply criticized by Bitcoin supporters. Matthew Sigel, head of digital asset research at VanEck, said that the Federal Reserve Bank of Minneapolis is now aligned with the European Central Bank's (ECB) critical stance on Bitcoin. He noted that the document envisions legal bans and additional taxes on Bitcoin to ensure that government debt remains the only "risk-free" security. Messari co-founder Dan McArdle specifically pointed out that a 1996 paper published by the bank titled "Money is Memory" describes currency as a fixed supply object that does not enter production, a concept that is closely related to the design of Bitcoin.