Why are banks and governments scared of Bitcoin?

[bentong talong]

I think banks and governments is scared of bitcoin is because they can not take over the control of bitcoin. And bitcoin can serve the customers more security and transparancy. And they are afraid if bitcoin can replaced them.

Yes, that’s probably the main reason why banks and governments are scared of bitcoin. They have no power over it, thus, they are afraid that people will choose bitcoin and other cryptocurrencies than banks.

[SingAlong]

As you can see now that bitcoin is the new and digital money and payment they accept transaction with low fees and fast transaction they also bring opportunity to have jobs that's why people embracing the system. Banks are afraid that someday the will lose their value and replace by bitcin system. While governments didn't want bitcoin because they can use it in illegal activities and they can't control the money flow inside the system

[Rustandy]

The government controls the fiat currency. They use the central bank to remove or destroy money from thin air, using what is known as monetary policy to exert economic influence. They also dictate how fiat currencies can be transferred, allowing them to track currency movements, dictate who benefits from the movement, collect taxes for them, and track criminal activity. All this control is lost when non-governmental bodies create their own currency.

[h31s3nb3rg]

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?

In my opinion , banks and some government are afraid of bitcoin because they don't know how to regulate it , they don't have enough idea on how it works but if they success in understanding the flow of crypto they would totally apply some tax in it.

[Baronggot]

Just what Satoshi Nakamoto's vision about a digital currency as an alternative for fiat money but is way more cheap, efficient, convenient and fast transaction. You can think of it like what email did to postal services where the industry seemed to decline as email became the mainstream of sending message between people.

[Gondwanaland]

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 seea that bank and government are aftaid in bitcoin because they see that bitcoin is a rival for them. We all know thwt nowadays bitcoin become popular so that it may happens that bank will be lose because of bitcoin. Also the government are afraid because may the bitcoin can control the government and it is not favor for them.

[vinbitpon]

I don't think scared is the appropriate term. The government is just doing their job to protect their people. Because for them, something unregulated can cause harm, and it is proven because their are crimes that Bitcoin is involve. You can read news about crimes and Bitcoin. I am a Bitcoin holder but we can't deny that truth. And for banks, they see Bitcoin as their competitors. Once people learned how to invest in cryptos, they are likely to ignore investing in banks.

[cryptoicicle]

Because why would governments and nation states alike want their national currency to be worth less? The more people that exit the economy in terms of fiat currency is a net negative and they are trying to prevent mass run out.

[hurriebra49]

Banks and governments are scared of bitcoin because bitcoin have very low fees and without taxes transactions and Bitcoin Decentralized cryptocurrencies that is why to find illegal transaction is a problem on bitcoin and these things are not good as banking system and government that is why banks and governments scared of bitcoin,

[Harley0501]

Basicly, bitcoin is decentralized which is you can control your asset without intervention from other people / goverment. Different from banks, they can control your asset from their regulation but its more safe and low risk than bitcoin.

[MrKubeem]

The reason for the banks being against the crypto paralysis,
- Money transfer is faster and cheaper.
The reason the government is against the crypto paralysis,
- It is very difficult to track money transfers in the crypto stock market. Malicious people are also making money transfers.
Banks and government afraid of bitcoin, because of the issue of privacy and anonymity. Bitcoin in performing transactions, it is easy, fast, anonymous, transparent and non-susceptible to government or central bank interference.

[rachelia13]

The goal of any company that provides bitcoin services is to help people who can not open a traditional bank account, so it's not surprising that traditional banks feel uncomfortable with the competition brought about by the bitcoin system. The government and banks are worried that investments into large bitcoins can reduce investment to the national real sector. And banking functions are no longer necessary because the bank function can be replaced by blockchain system. For example, the cost of money transfer abroad through banks that expensive and need a long time can be replaced easily and cheaply by blockchain.

[henry 94]

Becuase it could mean the end of their reign in the financial sector. Banks are foreced into our lives. we don't want them. they make us need them.
bitcoin can remove this partially

[endut15]

Banks and governments are scared of bitcoin because bitcoin have very low fees and without taxes transactions and Bitcoin Decentralized cryptocurrencies that is why to find illegal transaction is a problem on bitcoin and these things are not good as banking system and government that is why banks and governments scared of bitcoin,

indeed the fears of banks and the government is quite large. especially in btc is not applied tax, sometimes they think, if the tax is not applied maybe the income of the country is reduced in the absence of taxes. because I think the country's income is the source of the tax.

[njmulhsn]

This is mainly because of the fact that the banks and governments do not have control over bitcoin because of its decentralized nature. They would not accept anything which they can not control. What they need is something whose every transaction could be managed by people and they can hold someone accounted for in case anything goes wrong. They also do not trust bitcoin because most of the people would turn their assets into bitcoin and would resort to tax evasion.

[Daday23]

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 bitcoin is decentralized and they can not control it.And in bitcoin any transaction is faster at the same time cheaper.Goverment and bank scared to bitcoin because of the issue of privacy and anonymity. Bitcoin in performing transactions, it is easy, fast, anonymous and transparent.

[calum holding25]

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.

[paulk11087]

Fear is very normal. Firstly, when the crypto market is very developed, institutions such as the bank will not be needed much. Secondly, it seems to be objectionable for security by governments.

[StuartJonson]

Banks are very much scared of bitcoin because they may think consider bitcoin as there strong competitor.

[ahmedbrown]

Banks and government are virtually scare of bitcoin simply because it's a decentralized coins, they cannot control the demand and supply of bitcoin, they can control how many value or units should be in circulation like they do with fiat currencies.
And I think is good for bitcoin,  we can't risk putting the running of affairs of bitcoin in the hand of governments and financial institutions they will find a way of manipulating in their favour.