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The US government really doesn't use this much capital control in the current financial system. Look at the fx markets, look at all the dollar denominated bonds and paper issued by foreign companies and governments. They don't need to control each transaction, they just want to know where each transaction is coming & going.

>The Fed will never run on blockchain, imagine someone guessing the private key.

This is not a worry, if they lost a key they could just rollback to a previous good state and replace with a new token. This happens frequently on ethereum.