Maybe it’s better if Bitcoin doesn’t become legal tender

[Cookdata]

Some people keep saying they want Bitcoin to become a legal tender, like it’s the ultimate goal for adoption. But they don’t really think about the negative side of it.

If Bitcoin becomes legal tender, that means government control, taxes, KYC everywhere, and eventually, less freedom.. the very thing Bitcoin was created to avoid. Once it’s “official,” it stops being decentralized money and starts acting like another regulated digital peso or dollar.

So before we wish for it, maybe we should ask, do we really want Bitcoin to become legal tender, if it means losing the privacy and independence that makes it special in the first place?

Is there anything that you have made mentioned that has not been done even when legal tender hasn't been accepted yet? Bitcoin may not become a legal tender to some financial influencing countries but if you are going to make use of Bitcoin, you are going to use a KYC. I'm not sure there is any tier A exchange in crypto that let you use their exchange without a KYC requirement because they don't want to get be reported as a non compliance exchange, they all trying to avoid been sued and label as criminals violating money regulations.

Legal tender isn't going to change anything about decentralization. It's not going to stop freedom and it's not going to be government control because this things already existed even before legal tender came and I can't tell you this legal tender will take years of our existence before it can become actualized, the chance are very slim. Why do you think a country will make something a legal tender when they don't plan on buying such asset, it doesn't make any sense.

[Alone055]

Some people keep saying they want Bitcoin to become a legal tender, like it’s the ultimate goal for adoption. But they don’t really think about the negative side of it.

If Bitcoin becomes legal tender, that means government control, taxes, KYC everywhere, and eventually, less freedom.. the very thing Bitcoin was created to avoid. Once it’s “official,” it stops being decentralized money and starts acting like another regulated digital peso or dollar.

So before we wish for it, maybe we should ask, do we really want Bitcoin to become legal tender, if it means losing the privacy and independence that makes it special in the first place?

What makes you think that Bitcoin's decentralization will be compromised if it becomes a legal tender? That has nothing to do with its decentralization, because decentralization is in its network, and even if it becomes a legal tender, the government can't control its network, and that's what decentralization is all about. KYC can only be implemented on platforms or things that are generally centralized and allow them to control everything, but Bitcoin's network can't be controlled; the transactions, blocks, or anything can't be specifically controlled or filtered.

That being said, Bitcoin becoming a legal tender doesn't really boost its adoption, because that doesn't specifically make more people adopt and use Bitcoin but only the ones who already use it will use it more often when it becomes a legal tender, and the reason for that is that when Bitcoin becomes a legal tender, fiat currencies don't get banned, so most people will still use fiat currencies, look at El Salvador, do you think all the people in there use Bitcoin because it's a legal tender? No, most people still use fiat.

[Fiasem20]

So before we wish for it, maybe we should ask, do we really want Bitcoin to become legal tender, if it means losing the privacy and independence that makes it special in the first place?

Bitcoin being a legal tender don't really matter in my perspective,we just need the government to have a friendly approach towards Bitcoin.Just like what you said bitcoin being a legal tender isn't the ultimate goal for adoption,I just flashed back to when the government in my country was against Bitcoin,but my country's name never stopped appearing on the list of the top 10 countries promoting it's adoption,that alone shows that legal tender isn't the ultimate goal for adoption in regards to Bitcoin.But if any country wants to adopt it as their legal tender it isn't a bad decision.

[The Cryptovator]

If Bitcoin becomes legal tender, that means government control, taxes, KYC everywhere, and eventually, less freedom.. the very thing Bitcoin was created to avoid. Once it’s “official,” it stops being decentralized money and starts acting like another regulated digital peso or dollar.

So before we wish for it, maybe we should ask, do we really want Bitcoin to become legal tender, if it means losing the privacy and independence that makes it special in the first place?

Legal tender wouldn't hurt your privacy; when you store Bitcoin in a noncustodial wallet, the government can't control it. Legal tender means you will be able to use your Bitcoin everywhere in your country. Whenever you want to pay Bitcoin for something, the second party is forced to accept it. It's like when you are now buying goods and paying with fiat, then the shopkeeper must have to accept it. Even if the government launches their own wallet system to control you, it isn't necessary to move all the Bitcoin into the government-issued wallet.

Imagine you have been using a crypto debit card. Do you transfer all the funds to the card? I don't think so. You just move whatever amount you need; at least I am doing the same thing. So you can follow similar strategies for your Bitcoin with a government-issued wallet or exchange. Still, you are sharing our KYC with third parties like exchanges and gambling sites. You are safe if you can secure your Bitcoin right away.

[Alphakilo]

For one, Bitcoin is still a very volatile asset and lack monetary control and that's why it may be rather difficult for countries to adopt it as a national currency of choice over traditional finance.
It is better and more preferred as a great store of value that promises privacy from third parties for now against the backdrop of rising inflation for economies that are having financial crisis and if we were to learn from El Salvador, we would see that an unprintable supply of Bitcoin as a paper currency, far out weighs the risk of adopting it as a legal tender.

[JiiBs]

If Bitcoin becomes legal tender, that means government control, taxes, KYC everywhere, and eventually, less freedom.. the very thing Bitcoin was created to avoid. Once it’s “official,” it stops being decentralized money and starts acting like another regulated digital peso or dollar.

If Bitcoin doesn’t serve the purpose of being a legal tender, then it doesn’t fully certify as a p2p currency for which it was its intent by its creator.

You indeed raise a good argument though, that regulations does mean centralization. If I’m taking that out of context then, I beg your pardon and would have you correct me.

I wouldn’t base decentralization on regulations though. Bitcoin can’t be regulated but aspects of it is what can. That means, you can regulate how people use it across certain channels but it is in fact these channels that are being regulated and not Bitcoin.

Should Bitcoin function independently of exchanges and move from one non-custodian  to another as it out to be, regulations would have no means to have any effects there.