Why are banks and governments scared of Bitcoin?

[emberbekas]

I think banks and governments are afraid of cryptocurrency because they can't control it.

Moreover, they afraid if their people will use it for the purpose of bad things like money laundry, selling drugs, finance terrorists and many more. Those are the reasons why government and bank don't like bitcoin as far as I know.

[ballerin and giroud]

The only reason why banks and governments are afraid of bitcoin is that they know that technology from blockchain is better than systems owned by deal-related banks so they are afraid of losing customers because if all the customers are aware of this they will start switching to bitcoin and blockchain technology. Banks and governments have worked together to boost the country's reconstruction and with government bitcoins feeling threatened because they can not control the movement of bitcoin prices so they do not benefit from every transaction as they benefit from the bank.

[podavan]

i don't really think banks and government are actually that scared of bitcoin that OP thinks or some topics around here wants you to believe it that way. in fact i think they are very excited about bitcoin, specially banks since as bitcoin grows and more people invest in it the banks earn a lot more money from the transactions to and from banks to and from exchanges. and also nothing is stopping them in the near future from offering bitcoin related services like bitcoin credit/debit cards! or bitcoin loans,...

[Finnisd]

I don't think banks and governments are afraid of bitcoins.most likely they are not satisfied with the uncontrolled movement of money.

[YED]

Bitcoin and other decentralised cryptocurrencies allow people to trade directly with each other, cutting out the need for a middleman which, in traditional commerce, is a bank.While Banks generally charge fees for doing anything with money, even just holding on to it. That's because the banks have created a level of trust that transactions pass smoothly and everything is recorded and accounted for correctly.

[xbudahx]

The spread of digital money is undesirable for banks, given their current problems, which they have faced recently. Speech, first of all, is about low demand for loans, lower profits due to lower interest rates and fading hopes for deregulation.

[snaper14]

when in a free market you have a huge competitor you would do as much as you can in order to prevent it from operating in the market in order to take the biggest part of market share, so that`s why they do not want it.

[cmacwiz]

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 main reason that banks are against bitcoin and in some countries they have also banned bitcoin is because of the fact that it is decentralized so it can't be controlled by any central authority which governments hate as they always like to control the citizens and they like it that way and bitcoin steals that control from them, so they are afraid of bitcoin and that's why they are banning it.

[crustycrab666]

There are different reasons.
The reason the government is against the crypto money is because the money transfers can not be followed. Against the government because of terrorist organizations use this stock market. This stock market is getting money laundered.
The reason why banks are against the crypto paralara is the faster and cheaper money transfer with the crypto stock exchange.

In essence, the government can not control the activity in cryptocurrency in full. That's the basic nature of most decentralized cryptocurrencies. However, when it entered the exchange and their transactions there, there are few properties that change where there is a fee set by the exchanger. In this case the government can be involved, for example, tax-related.

[davison2]

As opposed to the existing banking system, Bitcoin has no hidden fees, no third party (commission) and the exchange rate is low irrespective of the currency compared to that of the literal banks. Meaning we don't need banks anymore; and government gets a lot of revenues from these banks too thats why they are threatened by bitcoin.

[KuyaBreezy]

Governments are uneasy about bitcoins majorly because of the Freedom  and independence it boasts of, Bitcoin's Transactions is not as easy to trace and tax, something that the governments may not like as much, it denies them a chance to earn income from tax  which the governments consider as a threat to the National economy, The Banks on the other hand consider Bitcoin a threat totheir existence as it comes with solutions where they have failed

[Heartbreakeren]

Bitcoin is a threat to banks. Bitcoin technology removes the need for any kind of traditional bank or regulator, correct?

[dcif80]

goverment is bank side and bank want to handle crypto market

[The_Dark_Knight]

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 banks and government known that bitcoin can defeat them. They're afraid of what if's i think. Another, if everyone knew about blockchain technology the banks become useless.

Bitcoin and other cryptocurrencies in theory can defeat banks, but they cannot defeat governments the government is a lot more than a currency or a way to move currency around the world, however since they are the ones that print the currency that we use, they will be deeply affected by it and in my opinion that is a good thing because governments are getting too powerful and we need a way to make them weaker.

[Jessica Gayla]

They're not scared. There's just not any real threat just yet. Environmental factors such as political and regulatory support, widespread social buy-in necessary to create network effects, and even a proper technological base are still very much in the banks' favor.

[eikzbtc]

Just today heard that some German online bank suggests to substitute SWIFT operations with blockchain operations with Bitcoin, recently bank of Zurich has already disposed gigantic BTC logo on its front
 So I can see some movement towards acception.

[atamat]

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?

Banking innovations in the sphere of financial services as a result of the influence of bitcoins will occur, most likely. The processes of changes in the banking industry are extremely slow and balanced

[cutecute]

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 banks and governments scared of bitcoin because there's a humor about bitcoin can make our bank disappear. Governments scared because if our bank gone there's a huge lost in our country for them.

[De Suga09]

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?

Bitcoin’s characteristic is that it is decentralized, which means it is not controlled by anybody or anyone or any organization or person. By that, banks and government are afraid of bitcoin because they cannot control it. Also, they do not know much about it so they are afraid of what they do not understand.

[Chandler32]

Obviously since they will no longer be able to make as much profit with Bitcoin disrupting their sources of income...