> I'm not sure a sensible institution would even consider BTC held at exchanges to be real BTC, just a kind of IOU. Nor should they. BTC held at an exchange is

> I'm not sure a sensible institution would even consider BTC held at exchanges to be real BTC, just a kind of IOU. Nor should they. BTC held at an exchange is, by any sensible definition, an instantly redeemable promissory note denominated in bitcoins. Several exchanges have defaulted on these types of obligations.