Should citizens be allowed to secure their money in self-hosted digital wallets that the government can monitor but not control?

Self-hosted digital wallets are personal, user-managed storage solutions for digital currencies like Bitcoin, which provide individuals with control over their funds without relying on third-party institutions. Monitoring refers to the government having the capability to oversee transactions without the ability to directly control or interfere with the funds. Proponents argue that it ensures personal financial freedom and security while allowing the government to monitor for illegal activities such as money laundering and terrorism financing. Opponents argue that even monitoring infringes on privacy rights and that self-hosted wallets should remain completely private and free from government oversight.