why do governments don't make BTC illegal worldwide ?

[LigwagGanern]

I'm wondering this because is such a real threat to bank system and we all know how banks and governments are tightly linked !

BTC could make people more autonomous, self-resilient, being their own bank. You can use it like cash, making your transaction almost untraceable (or untraceable using e.g. monero or dash or laundry systems) : this is governments worst nightmare, isn't it ?

Governments don't make Bitcoin illegal worldwide because they know that it is not bad things that was invented by Satoshi Nakamoto. Yes some of bitcoin's advantages are against in government but if you think carefully it is not bad, because bitcoin help many people, like what government do and want. They want people to have a better future, and they know that bitcoin can help them. So that there is some countries don't ban bitcoin but there is rules in using it.

[semobo]

   All the governments are helpless.They know very well that bitcoin would be a direct threat to their taxing revenues  and they could not trace all the bitcoin transactions.They know very well that bitcoin would become the ultimate choice of black money holders for money launderers.
       But since bitcoin is an internet currency,it could not be completely banned unless banning the internet which is impossible.The only thing they could do is to regulate bitcoins by framing rules for bitcoin exchanges and asking them to follow strictly KYC to identify persons using bitcoins.That's why many countries have not yet banned bitcoin.

But those governments can make the revenues from refulating the crypto currency usage.But even if they want to ban cryptos it can be banned or controlled all they can do is stop reading by banning the exchanges.

[concept2]

because the government is frightened by the existence of a digital currency such as bitcoin, with bitcoin that has a very sophisticated technology that can see all transactions and is very safe to make governments afraid for corruption.

Well maybe you are missing the point, the topic is why don't governments just ban bitcoin worldwide for fear of bitcoin replacing their fiat money and shutting down banks. So from my perspective, I suppose that it's nearly impossible for them to make bitcoin illegal internationally since they have to interfere with the internet to do so and this is not an easy-peasy thing to do. Therefore, what they are doing now is making regulations and imposing taxes on bitcoin but I don't think that would stop us from using bitcoin.

[Wahyud11]

because there is a government that thinks crypto is beneficial, so there is a government that legalize bitcoin and utilize it for government to gain profit

[Ahmadarwani56]

The answer is not possible because it could lead to the problem in the country, for the case of trivial alone could cost the state, let alone with digital currency may be a little complicated to set up to the Constitution in it.

[Sam San]

   All the governments are helpless.They know very well that bitcoin would be a direct threat to their taxing revenues  and they could not trace all the bitcoin transactions.They know very well that bitcoin would become the ultimate choice of black money holders for money launderers.
       But since bitcoin is an internet currency,it could not be completely banned unless banning the internet which is impossible.The only thing they could do is to regulate bitcoins by framing rules for bitcoin exchanges and asking them to follow strictly KYC to identify persons using bitcoins.That's why many countries have not yet banned bitcoin.

as long as the identification technology that is applied is the initial level. with the current technological way KYC can easily be forged and have about indetification. bitcoin is intended to be a conventional reserve cryptocurrency.

[Yoyo chan]

I think there is no point of making Bitcoin an illegal across the world by any Government. This will not be in favor of either of us. Bitcoin can't replace Fiat so why do they need to ban them.

[stripewhite]

Governments can ban Bitcoin, but the ban cannot be very effective. So, typically, they use other means to discourage Bitcoin ownership and trading.

But more to the point, what is the reason for these efforts to discourage use? Are the reasons and goals practical and legitimate?

Does Bitcoin present a threat to sovereignty, control of the domestic money supply, borrowing, inflation, foreign exchange or fiduciary institutions? Yes and No…

Gradually, lawmakers in some countries are beginning to perceive Bitcoin as more of an opportunity than a threat. There may be no need to dissuade citizens from adopting Bitcoin, even if the populace saves or spends it as actual stored-value cash and not just as a payment instrument.

[edjames]

As someone else stated, most governments didn't pay much attention to it, and know it's too late for them to do anything about it.


In a similar fashion, if governments knew how important to society the internet was going to be, they would have gotten involved a lot sooner. It's easy to think of government as wise and all-knowing, but in many cases, the wheels of government grind slowly, and the bureaucracy simply isn't set up to move swiftly when something like crypto suddenly goes mainstream.

[winterblues]

Governments probably cannot shut it down through "technical" means, i.e. hacking the system, thus crashing the value or preventing it from working. (Juergen Nieveler discusses this in his answer.) Thus, if I were a government that saw Bitcoin as a threat, I would try a three-pronged attack:

(1) Attack, using anti–money laundering laws, etc., the entities that allow Bitcoin to interface with the "real" (non-Bitcoin) world. That is, USD–Bitcoin exchanges, people who have a real-world address to ship things from, stuff like that. You may not be able to attack the part of the Bitcoin system that lives entirely in the Internet, but you can cut off any appendages that reach into meatspace (to use a term that I really don't like). In his answer, Stephen Gornick points out that this is already occurring.

(2) Try to destabilize the value of Bitcoin. So perhaps buying a bunch of Bitcoin over time, and then selling them all at once, causing market crashes. Or buying and hoarding Bitcoins. Free from all the laws designed to prevent market instability in the real world, a powerful, rich, hostile government could probably do quite a bit of damage to the Bitcoin *economy*, even if they can't actually touch the technical foundation of the cryptocurrency itself.

(3) Finally, attack the *image* of Bitcoin. Publicize the hell out of its uses for hard drugs, child pornography, assassination markets, etc. Fabricate a case if you have to. Get it embedded in the average person's mind that Bitcoin = Currency for Criminals.

So maybe they can't technically eliminate Bitcoin, but they can probably force it to be a currency that in polite company marks you as a criminal, that swings wildly in value, and that can't easily be converted into any real-world products. Which is as good as dead.

I think we're already seeing examples of (1) and (3), and (2) is probably feasible, even if there's no hard evidence of it occurring yet.

[Mr.John19]

You are correct bitcoin can influence the bank's framework. However, the issue is even the administrations make the bitcoin illicit around the world. They would not have the capacity to close it completely for a reason of decentralizing ability of it. With the assistance of the innovation on this age. The administration doesn’t have control over all digital currency. Some nation they enable some organization to build up an organization of cryptocurrency in because they are paying wage assessment to the administration so that they can work well.

[Captain Sneeze]

I'm wondering this because is such a real threat to bank system and we all know how banks and governments are tightly linked !

BTC could make people more autonomous, self-resilient, being their own bank. You can use it like cash, making your transaction almost untraceable (or untraceable using e.g. monero or dash or laundry systems) : this is governments worst nightmare, isn't it ?

Because government they want to control bitcoin but we all bitcoin is decentralized and no one can control.

[KIKI.loi]

perhaps the government is still afraid to accept bitcoin to be illegal, because bitcoin prices are so fluctuating that prices can go up or down very quickly. the government does not want to be responsible for public losses.

[cosmoo]

Yes, just because of this. Most governments need people who can't live without them, who can't live without banks. And when something provides this opportunity they want to ban it.

[poldanmig]

I'm wondering this because is such a real threat to bank system and we all know how banks and governments are tightly linked !

BTC could make people more autonomous, self-resilient, being their own bank. You can use it like cash, making your transaction almost untraceable (or untraceable using e.g. monero or dash or laundry systems) : this is governments worst nightmare, isn't it ?

very precisely what you convey because the negative side of bitcoin maybe the government is still considering making bitcoin be legal Another reason maybe bitcoin is still not known by ordinary people

[Gotumoot]

   All the governments are helpless.They know very well that bitcoin would be a direct threat to their taxing revenues  and they could not trace all the bitcoin transactions.They know very well that bitcoin would become the ultimate choice of black money holders for money launderers.
       But since bitcoin is an internet currency,it could not be completely banned unless banning the internet which is impossible.The only thing they could do is to regulate bitcoins by framing rules for bitcoin exchanges and asking them to follow strictly KYC to identify persons using bitcoins.That's why many countries have not yet banned bitcoin.

But those governments can make the revenues from refulating the crypto currency usage.But even if they want to ban cryptos it can be banned or controlled all they can do is stop reading by banning the exchanges.

Not all governments are against bitcoin. There are countries that approves bitcoin but have certain regulations of using it. They think of the good side of bitcoin that can help their country economy grow. The other government against bitcoin because they only see that bitcoin is a threat because of their politicians that have connections or even owner of a bank and any other companies that bitcoin can affect them, because of bitcoins characteristics, and also bitcoin cannot be manipulated thats why they're against on it.

[Kuya Kim]

Governments don't make Bitcoin illegal worldwide because they don't consider Bitcoin as a threat to the bank and to the economy of a country. They know that Bitcoin is such a help to everyone.

[Sergey190785]

My opinion is that bitcoin is not banned all over the world, because all officials themselves are the holders and investors of this currency.

[Kathleen Martinss]

It's true that transactions used Bitcoin requires no third parties like banks, and this may drive banks to the verge of shutdown. But instead of banning it, some governments see its potential and benefits for their economy.

[romero121]

Till date the growth on the world has taken place when something advanced happens around making the system function in an effective manner. Already few countries have adopted bitcoin and started to benefit out of the same. Following this more countries will adopt it to experience the good in it which looks to be the major reason why governments don't make bitcoin illegal.