Why are banks and governments scared of Bitcoin?

[sajol123]

Bitcoin is a legal asset. I think it will be huge moon again very soon. Many countries government are accepted bitcoin and some country not accepted bitcoin. But this situation will not be lasting so many times. Within a short time bitcoin became a giant again and its proved by bitcoin past history.

[Suketlapangan]

banks and governments are afraid of bitcoin because it is decentralized bitcoin, they cannot control or trace it

[TharuMax]

I think this is because of the governments and banks just wants that they have control over cryptocurrency. But it is impossible to make taxes on transactions of  cryptocurrency because of its decentralized nature.

[Cobrak777]

Banks and Governments see bitcoins as a disruptive technology as it has brought a  tremendous change in the entire financial industry. From olden times there has been innovation in every field of work after the invention of bitcoins and block chain technology there has been a revolutionary change in the financial industry as transferring of funds all over the world has been made easy through the bitcoins and block chain without approaching a third party situation like the Governments or the Banking system. As bitcoins has the capacity to replace fiat currencies and the ease of use of crypto currency makes the banks scared that people will leave fiat currency for bitcoins and the Government does not have control over the bitcoin network.

[Netnox]

Corrupt governments needs to be afraid about Bitcoin. Because capital flow can't be restricted if people start using Bitcoin. And this makes it very difficult for the governments to manipulate the national currencies.

[Biet12]

was caused because the state itself wants to create its own crypto daetahnya and want to develop on its own, what more banks now do not expressly prohibit, banks fear that the cash currency not in pakek again and will air over to crypto.

[Cj29]

Government didnt scared on bitcoin he just avoiding people scam in here country. Infact bitcoin is scared on governemnt. But bank is scared on bitcoin or crypto because bitcoin is good on saving than bank. They said no more bank in the future

[anilsaini.jaipur]

It's logical that banks and governments are scared of bitcoin. Banks are scared because less and less transactions passes through them which means less money for them in terms of bank charges that they get from transactions and Governments are scared because they won't get to get tax from these transactions. At least not now yet

[Rustandy]

for fear that investing in bitcoin can reduce investment in the real sector of a country.

[Suketlapangan]

the government forbids it is usually only temporary, but instead the government will make it yourself, what else the bank forbids is because it is afraid that it will not save cash in the bank again everything will change to bitcoin .

[Hiluxury Bitcoin]

i think banks are afraid of bitcoin because they know that there are a great possibility that bitcoin may replaced them and government hate it because they can  not put tax on it.

This is really the main issue of government and bank so there is no doubt if bitcoin goes to legal in all over the world then the bank goes to down and due to this there is also the government goes to loss because they can not collect high tax from people.

[bbcolex]

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 avoid some legal issues they might be dealing with illegal money, the anti money laundering law. Most countries prohibit btc due to some bigger country prohibit it. They can't really prohibit it totally since btc was made as a decentralized form of currency everyone can own one but finding a merchant who accept btc would be a problem.

[mcqueen95]

The bank doesn't expressly say why it is banning the use of Bitcoin but rather highlights regular forms of payment: cheques, credit cards, etc acceptable. "Bitcoin virtual currency and other similar is not lawful means of payment in Vietnam; the issuance, supply, use of bitcoin and other similar virtual currency as a means of payment is prohibited in Vietnam", explains the government-run bank. Bitcoin - and other decentralised
Cryptocurrencies - allow people to trade directly with each other, cutting out the need which, in traditional commerce, is a bank.

[svetochka.yakovleva.93]

I always enjoy reading other people's opinions in this thread. I agree completely with many guys. now there is a real war between the visas and a master of cards with bitcoin! a huge amount of money left their sphere of influence, this money went into the crypto market! Now the Visa and Master cards do not receive their planned profits.

[salink]

There are many reasons for countries to forbid bitcoin, possibly because bitcoin is a competitor to their interests as well as banks can not control the transaction, the government can not tax people, activities Money laundering of criminals ... they hate what they do not control so bitcoin and other altcoin are prohibited in those countries.

[Amokomowo2005]

They are not scared or have any so whatever fear  they only have fear on the risk which is associated to the use if btc by its people.

[NevejElad]

The banks are scared with cryptocurrency, because if the people knows well about cryptos,time will come that clients of banks might shift to cryptos, and the government will not legalized the use of cryptos because they are not familiar on what is the concepts of cryptos and how to regulate it if it will be legit in their country.

[otandelapaz]

One of the reason is the anonymous nature of Bitcoin. This feature is likely will and being use in illegal activities like narcotics, human trafficking, prostitution and much more.

Governments will have a hard time tracking down these illegal activities because the government does not have control to the currency they are using. That's why the are countries that do not allow transactions using Bitcoin or crypto-currency in general.
 

[spyda5556]

The short answer is that they are scared of cryptocurrency moving in an taking over. However I believe that it is inevitable. They can try to regulate and restrict for now but free market and competition from major companies like Moneygram and Western Union who already integrating with cryptocurrency like ripple will basically force their hand. The cost effectiveness and efficiency of cryptocurrency will surely be a major driving factor that will lead to it's widespread integration as those who oppose its use now will find that they can't keep up with the early adopters.

[nastyabor]

the people are started investing in bitcoin instead of keeping money in the bank account. The government can not levy a tax on bitcoins The lack of central authority is the main reason why governments are afraid of cryptoes.