Why Cryptocurrency threatens governments

[FLoving]

Over the years cryptocurrency  has evolved into a global currency but governments are trying to sweep it's relevancy under the carpet. We all know that the eyes of the community are now opened to the importance and blockchain technology.

What baffles me is why are the government making lives difficult by banning or limiting it's use? Is it because it threatens the political power or are they scared it will improve the global economy or force the traditional banks to reduce their ridiculous interests rate which we have been robbed of for decades now.

What is your take on this and what do you think will make governmental bodies to finally accept crypto?

Governments have an issue with crypto because they dont understand how to control it.  How can they make sure taxes are paid, how can they track usage and payments.  These are all things that can be done within the current monetary system.  Little by little they are warming up to it because they are finally starting to understand it.

Yes they have these issues with the cryptocurrencies but if they will study the whole system of blockchain they will understand that the citizens will not deny to pay taxes if they will legalize cryptocurrencies and will provide facilities for the users of cryptocurrencies. If they will facilitate us then we will also pay fees the same as we are paying to the exchanges.

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[Spaffin]

Governments have an issue with crypto because they dont understand how to control it.  How can they make sure taxes are paid, how can they track usage and payments.  These are all things that can be done within the current monetary system.  Little by little they are warming up to it because they are finally starting to understand it.

Yes they have these issues with the cryptocurrencies but if they will study the whole system of blockchain they will understand that the citizens will not deny to pay taxes if they will legalize cryptocurrencies and will provide facilities for the users of cryptocurrencies. If they will facilitate us then we will also pay fees the same as we are paying to the exchanges.

Of course, you can find many different reasons why the government does not want to legalize cryptocurrencies and the main reasons have always been the lack of opportunities to implement control of the cryptocurrency turnover and taxation of users who are anonymous cryptocurrencies owners.  But it seems to me that we still need to pay attention to the government’s ability to print new money, which is why inflation is growing.  If people use Bitcoin, their number is limited and governments will not have the ability to manipulate funds.

[btccashacc]

The reason why crypto is a threat to them because of its decentralized nature, when you use crypto they literally can't control your money and the fund can not be taxed, also they don't even know who's behind that address. In order to solve this issue, they might create their own cryptocurrency as you've seen some country are trying to develop their own, something that centralized so they can control it.

[huige007]

Governments have an issue with crypto because they dont understand how to control it.  How can they make sure taxes are paid, how can they track usage and payments.  These are all things that can be done within the current monetary system.  Little by little they are warming up to it because they are finally starting to understand it.

Yes they have these issues with the cryptocurrencies but if they will study the whole system of blockchain they will understand that the citizens will not deny to pay taxes if they will legalize cryptocurrencies and will provide facilities for the users of cryptocurrencies. If they will facilitate us then we will also pay fees the same as we are paying to the exchanges.

Of course, you can find many different reasons why the government does not want to legalize cryptocurrencies and the main reasons have always been the lack of opportunities to implement control of the cryptocurrency turnover and taxation of users who are anonymous cryptocurrencies owners.  But it seems to me that we still need to pay attention to the government’s ability to print new money, which is why inflation is growing.  If people use Bitcoin, their number is limited and governments will not have the ability to manipulate funds.

Cryptocurrency is decentralized, its value is controlled only by the users not by the government. In this way it can easily reduce inflation and make the state of countries with poor currency more stable. It is controlled by computers so no authority can manipulate it. This is the biggest and only threat the governments have of cryptocurrency, as they never want to lose their control over money. Not only money it is the control of whole economy.

[TinaK]

it is reversely asked it seems because Government and business entities only returning Bitcoin and not allowing Bitcoin to be a regular usage currencies throughout the world like how we are using US dollars.
If they accept the Bitcoin in any country as the the regulated and accepted currency it will be reach to many people.

[hahay]

If the problem is about taxation, it would be better for the government to accept and create any institutions that can regulate the use of bitcoin so they can apply the interest rates that they normally do in traditional banks. Indeed, it seems impossible but when the use of bitcoin and adoption continues to grow, the government will definitely implement regulations that at least with the use of crypto will also help improve the country's economy which in my opinion it would be better to do if compared to rejection because they felt threatened or any reason which makes it more complicated.

[HarmonyA]

Over the years cryptocurrency  has evolved into a global currency but governments are trying to sweep it's relevancy under the carpet. We all know that the eyes of the community are now opened to the importance and blockchain technology.

What baffles me is why are the government making lives difficult by banning or limiting it's use? Is it because it threatens the political power or are they scared it will improve the global economy or force the traditional banks to reduce their ridiculous interests rate which we have been robbed of for decades now.

What is your take on this and what do you think will make governmental bodies to finally accept crypto?

Cryptocurrency is a threat to government because it is base on the philosophy of decentralized currency.  Government want to control all financial transactions across the globe, so that they can place intermediaries and collect charges for all financial movements.
This will enable them monitor money laundering and place sanctions where necessary.

[purebitco]

Cryptocurrency such as bitcoin can be easily transferred or passed on to anyone anonymously and with this concept and in turn, it could be that any amount of money can be sent anywhere and substituted by exchanges everywhere. This makes money more mobile and if your bitcoin gets hacked any amount transferred can be considered a loss to the economy and could thus create economic problems especially if transfer is easily enabled. It's really trying to limit or even ban the government

[moviebuff777]

Governments want to us to spend the money they print and control.  They also want to be able to tax it and track it as much as possible.

[KennyR]

Governments want to us to spend the money they print and control.  They also want to be able to tax it and track it as much as possible.

This is what happening with each and every country. The fear every government have is the usage of cryptocurrencies for illegal activities and darkweb needs. This means government believe that they can't be controlled and taxed. In simple terms, Government always want to profit out of the people's earning. Through cryptocurrency it isn't possible, and the same is the reason for governments threatening bitcoin.

[meliodas]

Governments want to us to spend the money they print and control.  They also want to be able to tax it and track it as much as possible.

This is what happening with each and every country. The fear every government have is the usage of cryptocurrencies for illegal activities and darkweb needs. This means government believe that they can't be controlled and taxed. In simple terms, Government always want to profit out of the people's earning. Through cryptocurrency it isn't possible, and the same is the reason for governments threatening bitcoin.

The government could just implement a law about cryptocurrencies for the illegal activities around it. Cryptocurrency doesn't threatens the government because the government is so powerful that it could stop the activities using cryptocurrency in their area. Government are just being skeptical right now since they don't see a lot of interest in cryptocurrency but soon enough, we will witness a lot of institutions that are going to embrace the cryptocurrency.

[EdvinZ]

In fact, in every country, the government is the body that controls the issue of the national currency. In the case of cryptocurrencies, there is no such control. I think that governments can be loyal to cryptocurrencies if they can control their turnover on the territory of their countries. Otherwise, cryptocurrencies are competitors to national currencies.

[Kevondo]

In fact, in every country, the government is the body that controls the issue of the national currency. In the case of cryptocurrencies, there is no such control. I think that governments can be loyal to cryptocurrencies if they can control their turnover on the territory of their countries. Otherwise, cryptocurrencies are competitors to national currencies.

Governments should not be threatened of it. I am of the view that if governments allow it as legal currency that would reduce the number of crimes in this market as everything would be monitored and this will benefit the people and economy both. They can introduce it as an option with the paper currency. If the economy will grow it would have a direct impact on their government and country.

[julius caesar]

They do not want to allow the distribution of cryptocurrency in their country because government want to make everything under their control. Unlike crypto, it is decentralize meaning no one controls it that is why they do not want to allow it. Plus the fact that they are afraid that crypto might replace their current fiat money.

[huige007]

They do not want to allow the distribution of cryptocurrency in their country because government want to make everything under their control. Unlike crypto, it is decentralize meaning no one controls it that is why they do not want to allow it. Plus the fact that they are afraid that crypto might replace their current fiat money.

Crypto is better than fiat in many ways but they should not be afraid of it as a replacement of paper currency. Governments should understand the fact that people are using it as an alternative and this would run parallel to the paper currency. The usage of crypto will also improve the economy of a state that will benefit the governments and in turn countries so they should not be afraid of it.

[TrevorS]

The only and most compelling reason is the weakening of control over citizens.
The weakening of the country's financial institutions, weakens control, which in turn weakens power within the country.
In addition, while there is no established legal framework for cryptocurrencies, there is no payment of taxes on cryptocurrencies.

[Polar91]

The only and most compelling reason is the weakening of control over citizens.
The weakening of the country's financial institutions, weakens control, which in turn weakens power within the country.
In addition, while there is no established legal framework for cryptocurrencies, there is no payment of taxes on cryptocurrencies.

If and only if government will pursue strengthening the support of them to their people by imparting knowledge about financial literacy first, because in the first place, how could we teach people to use cryptocurrency if they are having problem and trouble taking good care of the proper spending and financial management in their fiat currency. So conducting seminars and shaping people's mind to adopt to cryptocurrency is the best possible way to make it happen, because crypto isn't made to threaten the government, it is made for the people to be responsible.

[fiulpro]

The problem is, that the government doesn't need to be threatened always until and unless they are all set on doing something bad and indulge in corruption.
According to a healthy government one should have the freedom to choose about the services , he or she might indulge in therefore I do think that cryptocurrencies do not threaten anybody they are just helping people out in their own way therefore I see no reason why the government might feel threatened or otherwise, they want a single body domination and this is really not an option when we think about how people make the government not vice versa.

[FlightyPouch]

Governments want to us to spend the money they print and control.  They also want to be able to tax it and track it as much as possible.

So what are you saying? We all know these things, can we stop it? No. Crypto currencies is decentralized, and with this these government can't tax bitcoin. But there are countries that can tax bitcoin, but not entirely bitcoin users but to how they will be accepting it. I read that if a company agrees to pay bitcoin to their employees, it will be under the incomd tax law where employees will be deducted a certain amount to their salaries.

[Spider A4]

I think the most common reason why many government opposes crypto are because the political leaders who make financial policies in the country are uneducated of the technological world and don't even know or understand how the crypto industry and stuffs work and hence they are always in doubt and fear anything new or strange to them.

I can highly relate your talks with our country political leaders, this type of decision or deals coming specially from ICT division and i think here most of the people's are illiterate in the modern technology. There no basic knowledge about crypto space.

I just do not want to blame the government, those government department is worked such related projects for this reasons no progress to adopt cryptocurrency.