Why are banks and governments scared of Bitcoin?

[Sihab76]

Banks and governments scared /fear bitcoin because banks systems don't carry the risk of bitcoin over centralized fiat paper money. Governments fear Bitcoins as a same case.

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[romero121]

Day by day the usage of bitcoin keeps on increasing, which make banks fear of bitcoin and other digital currencies. Governments fear about the decentralization without understanding the true potential. Possibly when more countries adopt bitcoin, scenario will change.

[PawanAggarwal]

There are lots of reason why banks & Governments are scared of bitcoin:

1. They are scared because their currencies not get less recognition.

2. Banks could fall with such recognition of bitcoin and their income in the form of transaction fees, interest charges etc. are not taken from clients.

3. Government can think that people joining crypto currency work would lie about their incomes and their taxes.

[jayveerastrullo]

Before bitcoin introduced, govenments and banks are the one who process our paying system, investment, etc. Now since there are too many users of bitcoin that the banks thinks that it will outweigh them, so they are scared of it.

[ellapurity]

The major reason why banks are scared of bitcoin is because they fell bitcoin is competing to there transaction and for government bitcoin is a threat to them.
   

[3angel84]

I think banks and governments plays the same goal why they're afraid when bitcoin enter in monetary scene of a country,both are afraid of some loses when this coins dominates such country.there might be a deffeciency in economic growth in the side of government because bitcoin has the fastest acces when it comes to transactions than the fiat money.

[samuraijin]

the bank does not want all of your funds saved to bitcoin or to other crypto currencies, this certainly will certainly hurt them let alone the government, let's see everything in control by them, it's time we own that controlling it and holding our own money

[Uno17]

Because in the first place it is profitable and unlimitted income depending on how the marke strikes. Whereas in the bank your money just sleeps but of course secured. But if you are a good investor you are willing to take risks investing in cryptos where there is a big chance of getting rich without paying any taxes. That’s why banks are scared of bitcoins because it might affect and lessen the no of  investors to invest them. And government scared too because there is no taxes being paid.

[LooBaao]

Day by day the usage of bitcoin keeps on increasing, which make banks fear of bitcoin and other digital currencies. Governments fear about the decentralization without understanding the true potential. Possibly when more countries adopt bitcoin, scenario will change.

If BTC develops and attracts many investors into the market. As such, the banking system in the country will freeze, because there are no customers deposited and invested in banks. Development projects raise capital through the ICO program and they do not borrow from banks.

[brickafterbrickwalldpt]

Some governments and most of the banks are afraid of Bitcoin because it doesn't need any authority or any third party to process transactions. Governments want to have a control of their citizens' finances but it will be impossible if cryptocurrencies become used widely. Right now, some governments are considering banning Bitcoin because they don't know how to treat it or how to discourage their citizens from using it. People are not dumb, we know what they are driving at and we won't let them get rid of crypto. They are way too late to stop Bitcoin.

[M00nlander]

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?

As always, if it's not something that governments and big corporations have control over- and especially if it takes away funds from their own ventures- then they will do all in their power to either get a big foot in the door or failing that Fud the cr*p out of it

[biksa]

The government wants to control all the money that is inside the country in order to receive taxes, accordingly the country makes a profit. Cryptocurrency is not regulated in any way, it can't be controlled, taxes are not paid from it, according to the government this situation is unprofitable. Therefore, they are afraid that this uncontrolled flow of money will gain a large scale.

[jovs]

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?

Simply because they find bitcoin far from their usual system, there are some complicated differences from how they manage the flow of wealth and collection of revenues. But, they can not hold technological innovation. Many developed countries started accepting bitcoin in their national market. Perhaps they should try doing it too. It is just a matter of studies and adoption.

[xamxam]

Some government banned bitcoin because they are affected on the economic aspect maybe, or they are afraid because they don’t even know the real meaning of it.

[Viarahine]

Because it can destroy the paper financial system, as well as the bankruptcy of banks.

[BlackSeaConqueror]

According to me  bitcoin can completely replace the banking sector for several reasons. Many developed countries understand this and are beginning to implement blockchain technology.

[xiboothrezi]

According to me  bitcoin can completely replace the banking sector for several reasons. Many developed countries understand this and are beginning to implement blockchain technology.

Instead, a more plausible reason is that governments and central banks are more concerned about the state's economic balance and other problems that may arise because of the misuse of cryptocurrency. Examples are its use for illegal activities such as black market, etc.

[nguyendat031]

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?

Governments are banned from bitcoin, they are buying it and accumulating. Bitcoin is related to politics.

[Lazada]

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?

Clearly, what has become the dreaded thing for governments and agencies in a country is the often changing price of Bitcoin. This very high fluctuation becomes a reason for the government because of the fear of a bad economic condition when Bitcoin is applied to the financial system in a country.

It needs a regulation that regulates the circulation of digital currencies like Bitcoin. I am optimistic when it can be applied well then the development of digital currency will greatly help increase economic growth significantly in a country.

[martirosyan666]

In the world of bitcoin, you are the controller of all things.. But Bank and government want to control how you use your money.
Thats why they are afraid of bitcoin. its decentralized!!!