The Role of Government in Crypto

[NellyBrownne]

A time will emerge when we'll see having less control over the currency regulations.
They're above all, they have all it takes to scrap Bitcoin, but then a bit part of them has seen the light in the dark about Cryptocurrency.
Everything and the world is evolving rapidly.

[poldanmig]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will government regulations on cryptocurrencies undermined crypto decentralized nature?

In my opinion, the government role is only limited to implementing existing rules and obviously the rest of the government can do nothing about the development of Cryptocurrency because it is decentralized, now the government is only trying to see how cryptocurrencies can bring financial benefits to the state,  taxes and regulations are wrong one way for the government to control the development of cryptocurrencies, to fully control cryptocurrencies I think it is impossible to do.

[Tumanggor]

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will government regulations on cryptocurrencies undermined crypto decentralized nature?

in fact, only Bitcoin is truly a decentralized crypto coin, altcoins are centralized crypto assets LOL

everything in this world related to the crypto world (exchanges, wallets, banks etc) can be regulated by the government but they will never be able to regulate Bitcoin

government regulations will of course make crypto more centralized but Bitcoin will never be touched by them

[mirakal]

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will government regulations on cryptocurrencies undermined crypto decentralized nature?

in fact, only Bitcoin is truly a decentralized crypto coin, altcoins are centralized crypto assets LOL

everything in this world related to the crypto world (exchanges, wallets, banks etc) can be regulated by the government but they will never be able to regulate Bitcoin

government regulations will of course make crypto more centralized but Bitcoin will never be touched by them

Some altcoins are also decentralized, but regulation can also be possible by touching the exchanges. Without exchanges, crypto will not grow as people will not be able to buy and sell it using fiat, so we have to understand that the government rule is really huge as they can ban it if it cannot be regulated.

[TelolettOm]

for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

It is not about the cryptocurrency but the regulation about a currency of a country itself. everything about a legal currency in a country should be regulated under the government, under the law, and it must be under control. That is why in some countries, crypto is not legal as a currency because the government cannot regulate and control crypto maximally which is too complex maybe.

will government regulations on cryptocurrencies undermined crypto decentralized nature?

It will give the limitation also influence to the crypto itself.
ALthough crypto mostly is created for decentralized purposes, if there is more regulations about crypto in the country, there will be some limitations of the decentralization itself. But, the government cannot limit fully to every transaction andalso activities because it is also too complex.