Bitcoin Forum

Some countries even after one law maker bring the idea of Bitcoin reserve and initiate a bill for am them go still reject am.
Some times some people they wonder watin go make government reject to invest for asset like Bitcoin.
This one na some reasons why some government dey reject to get Bitcoin reserve for there country.

1. The volatile nature of Bitcoin.
We no say Bitcoin dey highly volatile in nature, and the price dey swing every time, so some government no go gree invest for something like that, them dey like something way dey stable.
Reserve asset way dey like Bitcoin fit just lose one kind big percentage of en value for one kind short time thereby creating financial risk for the country way choose to invest.

2. Lack of true value and backing.
Bitcoin na asset way no get government backing or any physical asset backing, unlike asset like gold or fiat currency, Bitcoin value dey market driven entirely and because of that en con make am dey very hard for conservative fiscal policymakers for some nations to trust am as a safe haven asset.

3. Financial crime.
Bitcoin fit facilitate money laundering, tax evasion and other crime.
So countries way never dey updated to stop all this crime they fear to even accept Bitcoin investment.

4. Cybersecurity Risks.
To buy Bitcoin you need digital wallet and secure storage and this wallet them fit hack am.
No be all country dey well equipped with technical infrastructure to store or manage crypto assets securely, so fear they there body especially underdeveloped countries.

5. Influence of Global Financial Institutions.
Institutions like IMF, World Bank, and BIS no really dey support Bitcoin so countries way dey dependent on these institutions for loan and aid go always avoid to adopt Bitcoin reserve in other to stay for there good book make them fit they give them loans and aids.

I expect that since the cognate recognition given by US toward the use of bitcoin as national reserve should also be a reason to cheer other countries up towards taking same decision, but we may still exercise more patience in seeing the direction at which this is going, some may later join while some may not, but for now, as according to what we have, bitcoin is already taking over and it will soon got to a stage whereby it becomes irresistible by any country form adoption, but it will only serve a more benefits to those who had earlier adopted.

All this reasons which you gave are good reasons but they are not good enough to make a country reject the idea of owning a bitcoin reserve. but let forget about other countries who are not interested in owning bitcoin serve and focus on Nigeria, because  owning a bitcoin reserve is the last thing our government will think of right now, and it's not because of all this things you mentioned, it is because our leaders are too corrupt they are still after stealing the country funds to enrich themselves same goes to other countries. and  let me also inform you incase you don't know country like El Salvador have seen all this reasons you mentioned yet they still choose to own a bitcoin reserve, so if El Salvador can set up a bitcoin reserve after seeing all this reasons you mentioned why can't other countries see reasons to own bitcoin reserve like them? As for volatility of bitcoin it is not supposed to enough reason for a country to lose interest in setting up a bitcoin, because a country don't have to bother about the volatility of bitcoin since they are investing in bitcoin for long term, bitcoin is a store of value with potential returns why rejecting the idea of owning a bitcoin reserve. As for the other reasons they can be handled.

What is the benefit of the leaders in this? Rather, it is their loss. Where there is no room for leaders to steal, our country's government will never work on that project. Even there are many countries in the world who promote Bitcoin negatively for their own interests and are keeping the people of the country away from Bitcoin. Even where the well-being of the people of the country is at stake, some governments will object.
However, some countries are still thinking about Bitcoin and how to increase their country's reserves by investing in Bitcoin. It is the daily work of the government to manipulate the national reserves of underdeveloped countries, so it is natural that they are reluctant to take such a big step in the national reserve. However, they consider the United States as an idol and they are definitely going to decide to take Bitcoin.

All your reasons to rejection of bitcoin adoption by some governments all makes sense but I go also add one of those reasons which I no see for your list. Which is: lack of bitcoin knowledge.

Before a certain law maker go propose a bill for the adoption of bitcoin as part of strategic reserve by their government, it means say that very law maker go done get good background about bitcoin. Meanwhile other law makers no even understand am or perhaps nah their first time of having a discussion about crypto. So it's possible they would reject the idea.

What am saying is. A lack of orientation amongst law makers about bitcoin can also impede adoption among the house members leading to their rejection. Since it's a new kind of digital asset not common known.

I dont agree with your reasons though. Here is why

Our Naira has lost almost 60% of its value over the years while inflation increases. The Naira is even more volatile than Bitcoin without any upside always going down. Bitcoin at least has a long term appreciating price movement so it being a problem is really ironic.


The Naira isn't back by gold or any tangible reserve. And many Nigerians trust Bitcoin more than they trust the traditional banking system.


When it comes to financial crime every financial system is a victim. Scammers and online theft will always find what works for them, if they choose Bitcoin then Bitcoin is only a victim of their evil acts.


Lol, this is very funny. If we don't have good cybersecurity expert then we should not be managing banks, mobile apps or any financial system. Last time I checked we are not far behind in Tech.


I fear this is somewhat true. But should we take because of this and not adopt to new innovations?

I don't believe that these points are genuine reasons why governments are not adopting Bitcoin as reserve currency.

Without the volatility of Bitcoin, it will not be profitable. Anybody who understands Bitcoin can take advantage of the volatility to make profit. Nations like El Salvador and Bhutan are making money from Bitcoin because it is volatile.

If you think Bitcoin don't have value and backed by physical asset, is the dollars backed by gold or precious metals? The dollars is just a printed paper yet nations are keeping it as reserve currency.

Fiat can also be hacked or stollen. The rate of bank hacks and fraud keeps increasing every year. It is not only Bitcoin that suffers from criminal attacks.

Cybercrime is affecting all the sectors of the economy. The systems of many governments and top businesses have also suffered hacks..

I will accept this as an important reason. IMF will have full or partial control of the economy of nations that are indebted to it. It was IMF that made El Salvador repel some of the laws that made Bitcoin a legal tender. The financial organization is also questioning Pakistan for allocating electric power for Bitcoin mining.

All this reasons wey you give dey correct but I want emphasize on some of the major reasons wey me I think is responsible for some countries not accepting bitcoin.
Bitcoin is decentralised, meaning is not controlled by any institution or government organisation like fiat which is control by central bank. so most countries will see it as a treat to their traditional currency.
With adoption of bitcoin it will be more easier for some corrupt politicians to easily loot the economy of their country as the op mentions.
Most countries there government still don't believe in the potential of bitcoin as a store of value but rather they see bitcoin as a Ponzi that will definitely turn to dust.