Can Bitcoin be useful for governments and banks?

[rivoke]

The problem if bitcoin being use by government :
My country still forbid bitcoin usage because security purpose for example btc can be use for buying weed or money laundry that usually used by corruptor

If bank and Bitcoin work together , it will break bitcoin paradigm as decentralized curency also when people using bitcoin, they require pay some tax !

[BeGoods]

Very often I see people asking here if governments and banks are going to destroy crypto, because it aims to replace them.

But what if governments and banks can benefit from Bitcoin too? Here's a few cases that I can think about.

Just like US military invented Tor for their own use, cryptocurrencies can be used by agencies like CIA for their own purposes. They can secretly fund opposition in other countries, as well as fund private companies, researchers and political figures.

Bitcoin can be used as universal global money, it's much cheaper to store and transact than gold. Many countries are unhappy with financial hegemony of USD, and Bitcoin can easily solve this problem (although centralization if mining around China can be slightly problematic).

Banks can offer their customers better privacy via cryptocurrencies.

Thoughts?

Truth be told government might have even been using bitcoin for the purposes you have mentioned but will not come out openly to admit it because to them, its not the right way of doing things yet and to mostly what those agencies do, are if not outrightly illegal, its is immoral coming to say bitcoin made it possible for them, means adding more negativity to what is on ground already.

Of course no government will reveal deep secrets to the general public especially about financial issues and security. It is the reason why they form "the cabinet " so that such issues are discussed there and it stays among the privileged few. It is very possible that they are deriving immense benefits from Bitcoin and the blockchain but in order not to get the public eyes on them they'd rather prefer to keep it classified.

i think if it really does benefit to the the government why the government does not legalize bitcoin in order to be used directly by their own people, and not to ban the use of bitcoin? that's still a question in my mind because the fact bitcoin is still ban by some government, for now I'm also still confused what the government gained from bitcoin? can you seen it?

[sasaku bitbit]

Maybe this will be useful for the Government and banks if the price increases and the bitcoin continues to rise every second because bitcoin has value extremely high prices. Moreover, if authorized by the Government of the bitcoin maybe this would be better in the developing world economy, I am confident with bitcoin will also be profitable for banks as more and more investors are interested in depositing their money and bitcoin

[Cacaparg]

I think for goverment bitcoin can be useful, for example, if goverment will apply some taxes from bitcoin income or other  taxes. For bank i think it can not be useful.

[sch_lau]

Of course, they can be useful for everyone, people just have to wake up and stop being so scared!

[ekoice]

Banks consider bitcoin as their rival.They are ready to accept block chain technology and not the bitcoin which works in block chain technology.Banks are showing huge interest in block chain technology.Governments too have started implementing blockchain technology in various sectors like health sector,etc to make the work ease,reduce paper works and save time.Even Dubai government has planned to fully use block chain technology in all of its administration.They always come first in adopting latest technology to make the work ease and now the block chain technology.Banks have already decided to create their own crypto currencies working on block chain system.The only benefit that government could get from bitcoin is by legalizing it and regulating it to get tax revenue from it.

[rickadone]

I think it can be useful in some cases because if it became legalized, it will be source of money of the government because they will eventually tax bitcoins but as of banks I guess it is not useful because they are the top enemies of bitcoin.

Bitcoin is profitable and useful for all the people and departments in the country as well. Government and banks can trade in bitcoin and can earn money as much as they invest and trade. And for both of the above mentioned the profit will be higher because they can invest a huge money besides a single man. The governments and the banks have financial experts and economists so they can review and observe the market better than an ordinary person.

[PokerFace3]

I think there are limitations on it. Many people are using bitcoin specially for secrecy. In our country we use this wallet that has a limit in annual cash out and cash in. So I think it is impossible in using a big amount of funding.
For banks, I think they have no control to it because they are more regulated and the interest will be more less than the system they using today. Meaning less profit to them that why they are not usefull to them.

But the people who are fully involved in bitcoin cannot kept their activities in bitcoin for a long time. He will have to reveal his investments and earnings one day not to the community but to his family and so on. If the entire world accepts bitcoin as a legal and regular crypto currency then the governments and other departments in the country will also invest in bitcoin and the trade should be done only in bitcoins.

[Bitcotalk]

Very often I see people asking here if governments and banks are going to destroy crypto, because it aims to replace them.

But what if governments and banks can benefit from Bitcoin too? Here's a few cases that I can think about.

Just like US military invented Tor for their own use, cryptocurrencies can be used by agencies like CIA for their own purposes. They can secretly fund opposition in other countries, as well as fund private companies, researchers and political figures.

Bitcoin can be used as universal global money, it's much cheaper to store and transact than gold. Many countries are unhappy with financial hegemony of USD, and Bitcoin can easily solve this problem (although centralization if mining around China can be slightly problematic).

Banks can offer their customers better privacy via cryptocurrencies.

Thoughts?

Truth be told government might have even been using bitcoin for the purposes you have mentioned but will not come out openly to admit it because to them, its not the right way of doing things yet and to mostly what those agencies do, are if not outrightly illegal, its is immoral coming to say bitcoin made it possible for them, means adding more negativity to what is on ground already.

Yes if the governments involved in crypto currencies then they can take many advantages from it. the governments may use bitcoin as a salary to the public servants and can pay their borrowings from the banks and other countries and you are right for their special purposes like, military services, their financial services, their infrastructure, and their goals of obtaining the high income portfolio of their people and the departments as well.

[Irvinn]

Bitcoin and other crypto currencies bring certain benefits to banks and the government. Money earned in the crypto currency, vseravno largely in the form of local currency settle in the country in which they are used. So, for the transfer of bitcoins to the local currency, banks take good commissions, and the profit, brought from this activity, by the citizens, replenishes the economy of the country as a result.

[ghost424]

For me, yes, i think bitcoin would become a great asset for the government and banks if they legalized it and learn how to use it properly. They must not abuse it because it can turn into a finance for weaponries and bitcoin is not made for those kind of ways. Bitcoin helps a lot of people who doesnt have stable jobs and it can generate a source of extra income.

[harbin55]

Yes, specially to the government. The main life blood doctrine of the government is tax impose to its country; furthermore all essential things or infrastructure provided by the government comes from the taxes. It will a great help to the government if bitcoin is establish in each country since they will generate income also from it. They will be subjected to 30% tax rate in their net annual earnings. Another thing it will the national bank to collect the money and make it circulate in economic flow. Through this can lessen the production of money in the country. The continues process of producing money gives a negative impact to its value. The more money that the bank made, the lesser value it become in international market.

[rfcdejong]

At the moment, due to its technical component, bitcoin is a bad coin. Large commission, low network speed. It will be impossible to use it in the banking sector for this purpose there are specialized altcoyins. Also he is not anonymous.