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There are many impediments to wide-enough adoption of Bitcoin to threaten US monetary policy. The two biggest ones, according to the report, are the fact that it’s not yet widely adopted, and its potential for deflation.
But, if Bitcoin does get big enough to potentially threaten US monetary policy, or the Federal Reserve gets worried enough that it might, we may see a surge in regulation and selective law enforcement for Bitcoin businesses. New regulations and prosecutions will likely continue to be justified under the guise of preventing other crimes and protecting consumers.
Read the rest of the piece here.
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