The Minneapolis Fed has proposed taxing or banning Bitcoin to address the escalating U.S. budget deficit, according to CoinTelegraph. The report argues that such a move could prevent the national debt, currently standing at $35.7 trillion, from increasing further. Minneapolis Fed President Neel Kashkari has previously expressed skepticism towards Bitcoin, dismissing it as "worthless" and lacking utility. However, the Fed's recent report suggests a shift in stance, recognizing the potential impact Bitcoin could have on the government's financial situation. Implementing a tax on Bitcoin transactions would generate revenue for the government, while an outright ban could prevent further growth of the deficit. The report highlights the need for policies to address the deficit, which has raised concerns among policymakers and economists. This proposal by the Minneapolis Fed adds to the ongoing debate about the regulation of cryptocurrency and its potential implications for the economy and government finances. It remains to be seen whether this idea will gain traction or if other measures will be pursued to tackle the U.S. deficit.