Why Cryptocurrency threatens governments

[ibrar.noman]

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?

 
because government sees the need for regulatory measures to control digital currencies the size of the global financial system to pose a serious threat to the current financial system and  the alleged problems include money laundering, illegal revenue, use of such currencies in online gambling and terrorist financing.

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[BaraxLo]

Simply because governments like to have complete control over everything in our daily lives.

This is one reason among many reasons why the advent of cryptocurrency is a threat to majority of the developing countries. If we see the trend of growth of cryptocurrencies in the developed countries, it is swift and normal for the governments to tackle the challenges posed by it but in case of the developing countries-majority of which are already in financial crisis-the advent and implementation of crypto system in the economy can disturb the existing system whose policies have been built around fiat.

Yeah, world is changing with the passage of time with new inventions and innovations and use of those technologies are in our benefit but the fact is that it is we to do something in order to enrich ourselves with the opportunities we have. Government can use cryptocurrencies for their benefits as well but actually they are thinking that it will disrupt banking system which is actually not, they can handle both if they want.

[Crafts12]

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 doesn't threatens the government ot is the latter that are afraid of what the former might become in the passing days. Government feared the cryptocurrency due to the characteristics it have and the impacts of it to the people nowadays such as secure money, easy payment, anonymous transaction, and so on. Overall I don't think government will be in favor of the cryptocurrency.It will take a really long time for it to happen.

[wendiar19]

I think the government feels threatened because the government is very scared if this bitcoin or cryptocurrency is used as a tool for money laundering and for payment methods for terrorists so that the government is afraid of the dark side of bitcoin.

[gtglener]

I think cryptocurrency threatens government because People tend to use bitcoin than banks. But the government control banks and tax, if no one uses banks, it will truely threaten govenrment.

Well that is also a reason due to which cryptocurrency is viewed as a threat for the government that relies on the taxes from the people. The advent of cryptocurrency can potentially reduce the use of banks for the costumers who would initially use banks for making transaction would now make use of the cryptocurrency technology for it is more economic than paying charges on banks. This thing when reduces the government revenue is of course leading the government to financial crisis.

[hashshashin]

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?

It seems to me that you are exaggerating, claiming that cryptocurrencies have become a "global currency", although they really gained great popularity. As for the adoption of cryptocurrencies, each country relates to this differently, if you do not know, this topic was discussed at the global level and it was decided that cryptocurrency does not bear any danger to the global economy and banking system, but you need to watch them.

[gamechangers]

Not the government of all nations are against cryptocurrency but the government of some countries and I am sure they will never succeed. Though cryptocurrency adoption is yet to go worldwide but by the time it does, no government of any nation will be able to stop it.

[Xenophoto]

I think the government feels threatened because the government is very scared if this bitcoin or cryptocurrency is used as a tool for money laundering and for payment methods for terrorists so that the government is afraid of the dark side of bitcoin.

Everyone is scared of bitcoin being used by mafias or terrorists but no one really mentioned how unlikely that is. With bitcoin's volatility and the amount of money being transacted by the terrorists, they will be greatly affected by the movement of bitcoin's price. Another thing, do they really know about this thing at all? In movies, terrorists have hacker friends and some digital guy. I'm not sure if that's what's going on in real life since terrorists lived in a poor place that's why they become terrorists in the first place. They were forced by poverty and it's pretty much their culture.

Assuming that a group of terrorists accepted crypto as payment, what are they going to do with it? They are going to convert it into fiat because that's the only way that money will be useable. It will just leave digital trail that can be traced back to them. There's really no point for them to use this currency when they can be paid with fiat instead.

Another thing to note, so what if the terrorists are using bitcoin? How is that different from a normal citizen using bitcoin at all? How is that a big deal?

[kidoseagle0312]

Because majority of the crypto's was decentralized only few of them I think are being convert into centralize system. Decentralization is the one who hindered why the government of each country can't able to control any of the crypto currency. No. 1 is Bitcoin they cannot able to control it. that's why we don't have any taxes only transaction fee's was being deducted into our transaction every time we did withdrawal.

[conected]

I think the government feels threatened because the government is very scared if this bitcoin or cryptocurrency is used as a tool for money laundering and for payment methods for terrorists so that the government is afraid of the dark side of bitcoin.

- Even without crypto or bitcoin, terrorists can still use other tools or methods to carry out money laundering, these organizations do not lack intelligent and talented people, the appearance of bitcoin or crypto is really not important to them. And they are not afraid, why should the government be afraid, the hand and network of the government is very deep and stretches, they can control every situation and they know that crypto does not have too much threat to them, if it really threatens, they have destroyed it from the first days

[STT]

It seems to me that you are exaggerating, claiming that cryptocurrencies have become a "global currency", although they really gained great popularity. As for the adoption of cryptocurrencies, each country relates to this differently, if you do not know, this topic was discussed at the global level and it was decided that cryptocurrency does not bear any danger to the global economy and banking system, but you need to watch them.

I'd love to agree with but its no longer an exaggeration to say crypto currency could be superior to tradational forms of global currency.  The global reserve system we have now is centered around USA which by some was objected to from the start.
At first USA kept to a gold standard which by its nature is global standard anyway and also USA used to be the worlds largest exporter which created stablity.

The current system now is based on USA going further into debt every year, 5bn annual fiscal defecit and also importing giant amounts from the world, a trade deficit.   That means countries must take debt from USA for payment of goods instead of actual trade done. Its unstable and alternative appearing is quite likely

[Choyor]

Crypto currencies cannot be manipulated and cannot be created from thin air, while fiat money is under government control, therefore the government will not be able to accept anything they cannot control.

[WiresAreComing]

Decentralized currency is a problem for law enforcement, it`s too easy to make illegal deals with crypto (illegal substances, weapons etc.) almost without risk of being detected.
This kind of deals could be conducted in regular cash in a similar, although riskier, manner, but governments can control money via banks, which they can`t do with crypto.
The lack of control and knowledge of what crypto could possibly bring in the future may be considered a threat.

[unusualfacts30]

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?

You do have to understand that government could careless about bitcoin or other cryptocurrency but there are power like banking system who see crypto as a threat to their existing system. There is also a risk involved and it's much more work difficult to track crypto transaction than it is to track fiat transaction. It requires people with knowledge of the crypto system which requires educating your staff. It's partly due to a threat to their existing and partly due to cost associated with implementing crypto to their current system.

[eann014]

I think our government is not threatening to bitcoin, there is no news about it and since bitcoin drop so hard, the news all over here also stops. Maybe because interested people do not have the interest anymore after the hard drop.

[GregH37]

I think the government feels threatened because the government is very scared if this bitcoin or cryptocurrency is used as a tool for money laundering and for payment methods for terrorists so that the government is afraid of the dark side of bitcoin.

Yes this is also a reason besides so many others. Actually the government wants to impose regulations on the cryptocurrency and this is just because there may be so many side effects of Bitcoin if the people of the country start using it. Inflation might go out of control, and there might be uncontrolled unemployment.

Besides, the crime ratio can go high for transactions via Bitcoin do not have any record and this is why many governments feel insecure with Bitcoin and other coins.

[esetop01tryba]

Cryptocurrency takes a small percentage of the world economy so I do not think that it threatens the government of the world at least in the near future !

[Wexnident]

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?

Simply because it is decentralizing people too. Cryptocurrency is a democratic currency that is why the price is too volatile because of the investor and people which means we regulate the value of it, in some aspect, it affects the financial system where the government established for a long time. Before to think the global economy, think first of the national economy.

[Streamlink]

Many states have already legalized the crypto currency, but made it property, not a means of payment. But this did not affect the work of bitcoin. Difficulties in working with crypto-currencies arise only in those countries that have banned the use of crypto currency.

Yeah, a lot of states have legalized it for now and some are simply just quiet about it and I believe their idea of legalization would bring about some form of regulations and then when it comes to making transactions with the use of fiat, there would always be a need for fiat, and that certainly should make it not a threat to the government.

Even when we start hitting the point of real life usage, some of these tools will have a way of sticking with regulatory policies and comply and in that case, being a threat to the government will really not be a problem. If it is a huge threat to the government, we all know the government will frustrate and jeopardize everything.

I do not think governments are threatened by the fact that we are starting to use cryptocurrency. Any smart government would react and adapt. They can have their own tokens or coins and even if not that they can just start to tax bitcoin and other crypto currencies in a smart way and even manage to create a governmental protected wallets and exchanges that can really make them richer.

Think about it, "wallet" is same as insurance business, wallet websites hold your coins for you until you need it and they can do whatever you want with your money as long as they still have it when you want it back. Perfect chances for something as big as a government.

[liseff3]

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.

Cryptocurrency and blockchain technology, actually have educated and opened our eyes to the shortcomings which exist in conventional currencies and the fragility of the banking system.

What baffles me is why are the government making lives difficult by banning or limiting it's use?

Since the emergence of the first bitcoin crypto currency, it has long been rumored to be a decentralized currency or without a third party, such as a bank. This thing certainly makes most of the government furious and frightened. That the banks, that they have considered as the main source of their economy will collapse just like that.