Why are banks and governments scared of Bitcoin?

[rhamdy]

The government and the Bank are institutions that synergize to build the nation's economy with conventional money tools, while Bitcoin is a digital currency with a decentralized working system.
Of course, Bitcoin is a threat to the Bank and the Government in the operation of the state.
Bitcoin will be the enemy of the Bank because if Bitcoin is allowed to be used then the Bank will not operate maximally because its role has been taken by Cryptocurrency.

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[Bugcoin5]

So many countries now were prohibiting the use of virtual cryptocurrencies. And to think that many unemployed individuals were beginning to uplift their way of living because of their dealings with cryptocurrencies. Banks doesn't expressly say why it is banning the use of Bitcoin.
What do you think is the reason behind this?

Because Government,loses out a part of its income which poses a threat to its revenue. Payment transactions through cryptocurrencies are untraceable and untaxable.Government was losing out on income. Governments HATE to lose out on tax income. The same goes for buying and selling.

[jcmansah7]

Banks and governments are scared of bitcoin and its legalization as mode of payment because of two things which i know. First, is because transactions which are going to be paid with bitcoin is in a form of peer to peer network which causes the government and the banks to lose taxes and fees that they could have generated if this transaction should have gone through the banking system. Also transactions that occur with the use of bitcoin is not controlled by any central third party system unlike transactions that occur with the use of fiat currencies. These are some of the reasons that scares both the government and our central banks when the issue of legalization bitcoin comes into play.

[DUHOIxx]

Banks and the government are afraid that the bitcoin currency is correct. Because the electronic currency is strong, in the future people will use electronic money, they will not use traditional money, in addition to using electronic money government can not tax personal income, money laundering, corruption ...

[Kelvinikke]

Bitcoin has two features that scares the government and the bank from being accepted. Bitcoin which is the mother of all cryptocurrencies is transferred via a peer to peer network which does not involve our banking systems and therefore peers are able to transfer huge sums of money to themselves without paying any tax on it. This makes the bank lose certain revenue in the form of taxes that could have been charged on those transactions. Also bitcoin is highly volatile and its price changes frequently and does not make the government system believe in the making of bitcoin as a legal mode of payment.

[Conasse]

What about the profits? Banks make a lot of money with debt.Bitcoin creates less debt based on fiats

Banks and the government are afraid that the bitcoin currency is correct. Because the electronic currency is strong, in the future people will use electronic money, they will not use traditional money, in addition to using electronic money government can not tax personal income, money laundering, corruption ...

Have you ever paid taxes? Did you know a lot of people pay taxes related to their cryptos activity?

[Viranz]

Because the government does not want any currency that they can not control and banks do not want any rivals that will rival their business.

[Oppang Inamo]

So many countries now were prohibiting the use of virtual cryptocurrencies. And to think that many unemployed individuals were beginning to uplift their way of living because of their dealings with cryptocurrencies. Banks doesn't expressly say why it is banning the use of Bitcoin.
What do you think is the reason behind this?

Reasons why banks and government are scare of bitcoin:
1. It is non taxable wherein no fees are to be collected here
2. It is a threat to them
3. It is decentralized
4. It can't be falsify -  whatever informations can't be mistaken

[samvel86]

The government is afraid because it is out of control and will not receive taxes on transfers. The banks are afraid because the time will come for them to transfers to bitcoins.

[Damar]

I'm also not sure why so many banks are afraid of crypto because we still need the bank for other purposes. Because they do not really know what exactly chain blockchain is. There is a government that still sees it as Ponzi. It seems easier to bend than fix.

[asabed256]

It is normal for governments to fear the power of blockchain technology. What blockchain is doing is that it is making every transaction so clear and transparent that there are no cheats. Everyone is powerful because we all have copies of every transaction happening and there is no centralized node that controls all other transactions. This technology is dispersing power to everyone so the governments are uncomfortable.

[Elrozaq]

So many countries now were prohibiting the use of virtual cryptocurrencies. And to think that many unemployed individuals were beginning to uplift their way of living because of their dealings with cryptocurrencies. Banks doesn't expressly say why it is banning the use of Bitcoin.
What do you think is the reason behind this?

I think It is normal If the banks and Goverment scared of bitcoin. Because bitcoin is so popular and more valuable. Many investor choose bitcoin to invest their money. Government cannot controll bitcoin over, So Government afraid bitcoin will be used illegal activities.

[ashfakur]

 In my opinion, many governments blockchain all the advantages and conditions of disadvantage, it is not declared as ligel! Rather they declare bitcoin banned by showing different reasons! The reasons they actually see are not real reasons! Their real reason is that because of bitcoin transactions, the government or the banks are unable to earn their profits, because the government or the banks do not receive any fees from the bitcoin transactions,But due to the transaction through bank, the government or the banks accept the fee from the transaction, which is the benefit of the bank and the government, it can be understood that due to the use of bitcoin, the benefits of the government and the bank are not benefited by the government bitcoin Who is declared banned !!

[ninjaeth]

Not that they are really scared, its because they believe in countering money laundering and sees Crypto as opportunity to do that easily.

[djkyno]

Banks and governments are scared of Bitcoin because they don't like to see a decentralized currency used by the communities around the world. Governments and banks prefer to deal only with their local fiat currencies because they can easily control them , while its not the same case with Bitcoin.

[DavitRoi]

Banks and government scared of bitcoin because of it's raising rate and for raising price people want to invest on it more than bank.

[badungs]

I think it's perfectly natural that the government and the banks do not like and fear bitcoin. as more and more people want to own and use cryptocurrency.
The government is afraid of losing their tax revenues because they will not be able to track the bitcoin transactions. So something reasonable if they are very interested in banning cryptos. as well as banks, Banks will suffer losses in the revenues they earn from transactions and remittances, if everyone takes advantage of cryptocurrency and no longer trust the bank. perhaps they are also afraid that in the future people will completely avoid deposits in the bank and will only buy cryptocurrency which will be a big loss to them. So it becomes a fairness if they forbid cryptocurrency that exists within their country.

[currencydesigner123]

Cause it already starts snatching the profits of the banks meantime. So the bank doesn't explicitly say why it is prohibiting the utilization of Bitcoin yet rather features general types of installment: checks, charge cards, and so forth as satisfactory. In contrast bitcoin - and other decentralized cryptocurrencies - allow people to trade directly with each other. Banks are bounded with rules at the same time bitcoin is open and wide. Of course, the anonymous nature of Bitcoin means that it can also be used for illegal purchases - such as buying and selling drugs or weaponry. But banks are afraid of bitcoin a lot.

[ClarenceDo]

Because more and more people feel interseted in bitcoin than fiat currency.

[tanjimaarfin23]

Bank and Governments are scared of bitcoin bcoz they think bitcoin replaced all currency. If bitcoin replaced all currency then bank and government are flowedown.