Why are banks and governments scared of Bitcoin?

[callmeback]

Maybe beacause bitcoin doesnt have a tax for me thats the only thing that they scared of i guess. 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. Banking innovations in the sphere of financial services as a result of the influence of bitcoins will occur, most likely.  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.

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[3philong]

I think the government can not control it. Since banks do not want thriving electronic money to compete directly for their profits, or for many other profound reasons we can not know.

[buternasek]

the possibility that the banks and the government are afraid of bitcoin because bitcoin is the only coin digital currency that can not be controlled by the government or the bank, and from bitcoin transactions is also very transparent and can become rich from bitcoin.

[Harrow30]

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?

Just as being said, no tangible reason to say as to why people should not engage in the Cryptocurrency; especially when there is no money involved in investment. When government cannot proffer solution to the prevailing unemployment situation of their country, why will they now want to stop the youths from engaging in cry that is alleviating them from poverty? There should be a real check and questioning of the government's true intentions.

[Thanasis]

Because banking system will fade away if people adopted to the bitcoin system that is why they want the decentralized money to not in the usage.The reason behind the governments scared is that if banking system fail means the fiat money fall which is the back bone of all countries revenue so no government want that to happen.But they can regulate the bitcoin usage to get the benefits from bitcoin usage.

[markleal]

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?

Hi there AteenaD! There are a lot of questions and post something like this before. Maybe next time you should try to use the built-in forum search or even searching in google before you ask. Anyway, the frequent answer to that question is the government it self dont prohibit bitcoin because they just want it to do so or because other country just ban it. The most frequent explanation of the government is that bitcoin is used by other in wrong doing. They use bitcoin to create a scam; example, a certain just organized individual is presenting a state of the art product or services that is backed by a coins or tokens, but in order for them to pursue their innovation they need investors to continue. The investors then are been promised to get a reward or portion of the earning someday if the project become successful. But unlucky, some went go in that way. By that million or maybe billion of people fall into these scenario. As a result, government ban the ICo in order to prevent its citizen fall into a financial crisis.

[Ocha Bacoh]

because the selling value is very high and difficult to control, so the fear of misuse.

[damrianto]

the government is only afraid of losing taxes, because every transaction is done in every bank without in taxes. this is an example of a loss experienced by the government. and once a transaction is done in one bank will be able to drain out the finances in a bank ... this is what the government and banks fear.

[papasmurph]

In my opinion, the only reason governments and banks (which I think is the same) do not like crypto coins is because they can not control them. That is, they can not control also the people who used them. 

[wtbhitlv]

If bitcoin is widely used, it will weaken the value of Fiat, which is not acceptable to banks and government departments, and I don't think the development of bitcoin is so smooth. We also see the unwelcome attitude of the government many times compared to the special currency.

[Marry Finch]

The state or the central bank of the country regulate the quantity and circulation of money with the help of banks. They are engaged in the issue of currency in their country and thus reserve the right to influence it at their discretion. Currently, crypto-currencies are not subject to interference by the state or other central authorities because their rate depends only on the law of supply and demand and they can not be issued by the government or other central authority. All this inspires them with fear, since they can not control the number of bitcoins released into circulation.

[Dante4142539]

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 one of the reason that's why some of banks saying that they not recommended the use if electronic coins its because they are afraid that a lot of people will find an easy way to become successful when it comes to different type of e coins and realize that they not need the banking anymore.

[Aryadwipanggah]

bitcoin price growth has made many new bitcoin users including big capital investors interested in investing in bitcoin, so the less investors who keep their money in the bank and choose bitcoin as long-term investments have an impact on the government's tax revenue and government revenues, hostile to bitcoin with various issues and restrictions

[Karakyli]

Crypto-currencies seek to completely exclude the role of the bank as an intermediary in the implementation of transactions. Transactions can be approved by millions of users of a decentralized peer-to-peer network on the basis of which crypto-currencies function. Due to this, the role of the bank is completely excluded and along with it the need to pay a bank commission disappears.

[zarintasnim]

Every government has won strategy to lead their economic field. And also account their all asset. Bitcoin holder have won account and transaction system.They do not go to bank for their transaction.Government dose not get any tax for bitcoin.

[Rakabel619]

Hello. I think banks and governments are shy of using bitcoin or any other crypto, because they do not have a fixed value that they can only control as government or national bank as it happens with the euro, the dollar, etc.

[Blekok001]

Banks and Governments collaborate to benefit from their customers in various ways, such as: creating rules involving third parties, making tax provisions on certain transactions, etc.

This is what the Bank and the Government feared by the existence of Bitcoin which has transparent and decentralized nature without the need to involve any party.

[rabs]

There are some reasons that government scared of Bitcoin,Government cant control the Bitcoin transactions because Bitcoin is an autonomous no need of third party to operate.Government want to impose tax on every transaction to generate the revenue so if government cant handle how will collect the revenue.Government also threat that Bitcoin will encourage the illegal activities transaction.Banks scared that Bitcoin will encourage to increase the inflation rate which badly effect on the economy,But if Bitcoin legalized and a portion of Bitcoin activities given to the Banks will be helpful for banks and government.

[cizatext]

Government is all about control and regulations of all activities that is taken within they territories, but bitcoin as a decentralized commodity can not be control or regulated by any person or government so at that the government of most countries of the world will never buy into the idea of using bitcoin since it is an independent commodity. Even the financial institutions of countries will always attack bitcoin since they feel that bitcoin will take over their responsibility in providing financial services to the people.

[ToyotaFortuner]

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 there are several factors that make the government and the bank fear with digital currencies such as bitcoin, bitcoin is a digital currency that can be used for anything and all transactions are very open which means everyone can see it that makes the government fear.