Why are banks and governments scared of Bitcoin?

[Demughni]

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 why banks and government scared of bitcoin because the banks and government cannot controll bitcoin over, The bitcoin is decentralized currency , it is difficult to cotroll it. It is my opinion.

[francesyrus]

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?

Government and banks are scared of bitcoins because they are afraid that someday it will replace fiat money. Also bitcoin is decentralized in nature. Government and banks wanted to control everything.

But I think there are some financial institution that are now putting crypto currency into their system.

[iotarocket]

They obviously are afraid of losing their relevance. The middle man never wants to be cut out.

[jurelmartin]

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?

Banks and governments have a different reasons. Banks are afraid of bitcoin because other people are now goin to bitcoin investments because they can get a lot more compare to banking so banks lose some of their potential customers, while governments afraid of it becuase it might be use for money laundering so they put regulations to it

[Ken Kamaruddin]

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?

this is my question too.i think sometimes i Saw if bitcoin is an antithesis of the banking world.
Actually, the regulation must be bitcoin / crypto to be a partner of bank not an opponent where must be removed. in fact, withdrawing funds from bitcoin and crypto transactions must use the bank. so what's the problem actually

[rizkypurwati]

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?

the reason is taxes that can not be controlled by the government, because income from bitcoiners can not be taxed because it is anonymous, but I do not agree if the bank also objected to the existence of cryptocurrency (bitcoin), because bitcoin transactions always end up in fiat currency and of course banks are institutions that facilitate and more and more such transactions, the bank must be profitable

[teklang01]

In my own opinion, banks and government are scared of bitcoin is because bitcoin is created to provide solution to financial system where people have the freedom to manage their own finances and can send or receive money cutting the bank services. Government can't impose tax on bitcoins. And that my friend are some of the reasons they are afraid of it.

[jhonvir666]

I think the government and the bitcoin banks should not fear because bitcoin is now one of the major cryptocurrency across the country that decentrilized coins and one now digital currency to all and it gives high percent everyone also provides huge prices in a crypto. but in my opinion the bank this year as a union bank now accepts a bitcoin means agreeing with the bank and the bitcoin as well as the government has agreed to the bitcoin they have nothing to fear except in the government which does not agree with such a country that has been banned by bitcoin so neither does the government agree with bitcoin. in our country of the Philippines I know it's not hard for people to join it because government accepts bitcoin in the Philippines that is part of the pre-ICO  that bitcoin is doing here in Philippines.

[Phyton76]

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?

Many nations’ government ban bitcoin because they fear it and they cannot control it. It is true that bitcoin gives job to countless peoples but the government doesn’t recognize it. Banks also ban bitcoin because some of their clients are turning to bitcoin because it is cheaper and doesn’t require numbers of extra charges just like banks. Also, they are afraid because they cannot control the future of money and in the future, noone will use money but only cryptocurrency

[Aaroenz0r]

just because they can't control it. and the bad side of crypto that is use for drug or something like that make people think bad about it

[entrepmind23]

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 for banks, using cryptocurrency means being the bank yourself so you don't need services from them which would result for them to lose some income. The aim of having blockchain technology is to eliminate the middlemen to reduce the cost and banks are middlemen so we don't need them anymore if we wanted to continue using cryptocurrency that's why they are suspending some accounts involved with cryptocurrency transactions even though they cannot give any reason why they suspend it. It will just affect them if they continue banning it anyway since many people would withdraw and then close their accounts resulting to more losses for them. All they can think about why they suspend such accounts is because of Anti-Money Laundering although the account holder has proof where he got the money.

As for the government, being decentralized means there is no single authority that is in control and in our case now, it is the government that has the control over its people. Having a semi-anonymous currency means they cannot monitor all the time who are the people behind such transactions and they are afraid that people will get involved in illegal transactions.

[shakira19]

Bitcoin is the most popular cryptocurrency.  And many more people invest in it. So this is the competitor of banks because of people investment. Bitcoin give job for many unemployed peoples.
 
More than all , government can't put tax on it. So they scared of there  competitor.

[buggy]

Because bitcoin is a threat for them when it comes to investments and transactions. Lot of people are now engage in investing bitcoin rather than on banks, and its a lost to the bank instead the transaction will be for them people rather choose to transact it through bitcoin because of the higher percentage of profit.

[solarisexodus]

It is an obvious thing-Politics... The government cannot live without its people who put trust in its leadership and so people who provide taxes pave the way for this government to sustain its power. If these people would be silent in their business transactions such that they will engage in such a way bitcoin is, then most probably they will get lower rates of taxes they want from this private companies or even the mandated rules and regulations imposed; it is a logical way of giving a scenario...

[jhonjhon]

Because bitcoin is a threat for them when it comes to investments and transactions. Lot of people are now engage in investing bitcoin rather than on banks, and its a lost to the bank instead the transaction will be for them people rather choose to transact it through bitcoin because of the higher percentage of profit.

Agree with you but I don't think bitcoin will be a threat for banks. We should think also that cryptocurrency is a way of building up a new form of currency which could help us to be more productive than of before.

[JeBro]

Banks and governments are scared of bitcoin, because bitcoin is absolutely beyond their control. And for a successful economic policy both governments and banks require centralized management of the financial system.

[Coinnosaurus]

Bitcoin allow people to trade directly with each other, cutting out the need for a middleman which, in traditional commerce, is a bank. Of course banks aren't happy about being made obsolete

[RuslanSamui]

Hello everyone, it's very simple, because banks and the government can not control the crypto currency, and fear comes from here

[thesmallgod]

banks consider cryptocurrency as a threat because they are scared of future incidence such as reduced numbers of customers, declination in access to money and prevention of customers from risky and shady scheme through which bitcoin maybe used for. recently in my country, the central bank has warned general public again dangers involve. the worst part of it is that many online and the government and focusing generally on the cons of bitcoin and other cryptocurrency but they have ignored the pros.

[keninu]

Bitcoin is decentralized, so the government and the Bank can not regulate it. perhaps that is a strong reason why Banks and governments are afraid of Bitcoin. Just imagine what happens if all people use Bitcoin. then the activities of the bank will be quiet, and the Government does not get income from the financial tax.