Why Cryptocurrency threatens governments

[Xampeuu]

the government worries that if the crypto currency enters the economy of a country, the government will not be able to control it and can damage the exchange rate of the country's currency, and the transaction cannot be monitored whether it is for good activities or actions that violate the law and harm the country or someone

it is really what you say but I am sure that in the future the government will adopt an economic system that uses crypto currencies so that it will make the country's economy more advanced and developing

I don't think so. The government is also thinking this in advance and crypto currencies will never be a common currency but digital currency will. The government will never let a technology like the Blockchain slips aways, they will be applying it. As far as I know there are banks studying the technology in order to make a development out of it.

moreover in developed countries it has legalized it, so as a partner, of course, they must follow the development of developed countries. I don't think it threatens the government, but this is because preparedness is still lacking

[idham29]

To make government accept crypto currency maybe easier than we think. We only need to show our seriousness to pay tax based on cryptocurrency that we have. All this time people are talking about avoiding to pay tax by the use of bitcoin. Maybe if we orderly pay cryptocurrency tax then government will accept bitcoin and will not pretend bitcoin as a threat.

Actually the government does not feel threatened by the presence of cryptocurrency, but the government has an interest in controlling the adverse effects caused by the existence of crypto money that can harm its citizens. Besides that, the government certainly tries to get income in the form of taxes from the transaction.
If these two elements can be fulfilled, of course the government will open up and allow cyptocurrency to be used in the country.

[reality18]

Cryptocurrency scares the governments because it is a complete practice of decentralization which allows the people to gain absolute financial freedom without the interruption of any third party. Here, transactions can be scanned but the entities involved are not known. With this, the government thinks it is being robbed of its power to hold control over the financial transactions of the people. Also, some governments are of the conception that crypto is involved in drug trafficking, the purchase of stolen materials on dark web, money laundering etc.

[Caladonian]

Cryptocurrency scares the governments because it is a complete practice of decentralization which allows the people to gain absolute financial freedom without the interruption of any third party. Here, transactions can be scanned but the entities involved are not known. With this, the government thinks it is being robbed of its power to hold control over the financial transactions of the people. Also, some governments are of the conception that crypto is involved in drug trafficking, the purchase of stolen materials on dark web, money laundering etc.

That last impressions still applies with crypto industry, being used for illegal transactions is mostly the reasons why the government don't wants
to let this system being adapted from their jurisdictions, wanting to have a full control and be able to sort how the people interact with this illegal
activities by the use of traditional system.

Fear might be the scapegoat but in reality, they are afraid not being paid with taxes in which crypto users can freely do with this system.

[Hemady17]

In my opinion, it is because, of the banks. Banks has been a long time partner of our government, the government looks after the bank and the bank looks after the government, now, cryptocurrency which does not need the use of banks or any other third parties are coming, and the banks are threatened that they will lose their jobs, so the government as well feels pressured by this circumstance, but there are still lots to discuss when it comes to the government and cryptocurrency.

I'm also looking it as a main reason. Government is benefiting from banks across a nation since it is being hold by them. Cryptocurrency was created as decentralized that no one can over power it. Contradict to the role of the government. Therefore, existing of cryptocurrency from a country can create a threat towards government. I'm just amaze to Japan, instead being it as a threat they used it for the good welfare.

[Ayiranorea]

In my opinion, it is because, of the banks. Banks has been a long time partner of our government, the government looks after the bank and the bank looks after the government, now, cryptocurrency which does not need the use of banks or any other third parties are coming, and the banks are threatened that they will lose their jobs, so the government as well feels pressured by this circumstance, but there are still lots to discuss when it comes to the government and cryptocurrency.

I'm also looking it as a main reason. Government is benefiting from banks across a nation since it is being hold by them. Cryptocurrency was created as decentralized that no one can over power it. Contradict to the role of the government. Therefore, existing of cryptocurrency from a country can create a threat towards government. I'm just amaze to Japan, instead being it as a threat they used it for the good welfare.

Yes, governments are the most beneficial organizations out of banking. Cryptocurrency being on the decentralized platform gives no power to the hands of governments. Governments weren't clear in the usage of cryptocurrency, that the inflow of economy is supportive to the growth of the country's economy. Japan is truly an exception who learned better about cryptocurrencies and believed on its potential that it'll surely beneficial some day as each and everything is getting integrated to technology.

[senin]

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?

So far, leading states, including the United States and European Union states, have come to the conclusion that cryptocurrency does not pose any threat to global financial stability. Moreover, cryptocurrency does not pose a threat to the existence of specific states or their governments. Cryptocurrency is still too small and cannot significantly affect the global financial system. If she walks along with the national money of states, then she will even be able to benefit both citizens and the state as a whole.
At the same time, cryptocurrency is not even able to threaten the existence of states and their governments.

[Spaffin]

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?

So far, leading states, including the United States and European Union states, have come to the conclusion that cryptocurrency does not pose any threat to global financial stability. Moreover, cryptocurrency does not pose a threat to the existence of specific states or their governments. Cryptocurrency is still too small and cannot significantly affect the global financial system. If she walks along with the national money of states, then she will even be able to benefit both citizens and the state as a whole.
At the same time, cryptocurrency is not even able to threaten the existence of states and their governments.

I think that you need to amend your words, because I believe that there is no danger for states from the cryptocurrency that they can control.  If we take into account the top-rated cryptocurrencies including Bitcoin and Ethereum, then the activities of the owners of this cryptocurrency are still in contact with the banking system and state financial institutions.  And if you take the Libra project as an example, then this project already has the foundation of independence from anybody’s influence.  This is one of those projects that governments do not want to implement.

[shield132]

Cryptocurrency scares the governments because it is a complete practice of decentralization which allows the people to gain absolute financial freedom without the interruption of any third party. Here, transactions can be scanned but the entities involved are not known. With this, the government thinks it is being robbed of its power to hold control over the financial transactions of the people. Also, some governments are of the conception that crypto is involved in drug trafficking, the purchase of stolen materials on dark web, money laundering etc.

Btw the last proposal is true and we can't deny that but at the same time the real problem is that government doesn't want crypto adoption because of that reason and also because that people who have ban on bank accounts or have unpaid loan. can still touch money online. So they want adoption but at the same time they want control on it, that's why they are lost in vein, but as I see they slowly start adopting, for example it's possible to pay taxes in btc in Ohio state.

[Jorge158]

The governments are afraid of the decentralized nature of cryptocurrency especially with Bitcoin which has the largest market dominance. The governments are centralized and wish to always have control over the financial aspects of the lives of the people. However, Bitcoin does not allow this but rather takes this power from the governments and gives it back to the people.

[Ozero]

Governments really fear cryptocurrency, but not because it threatens their existence or carries another threat to them. Just cryptocurrency operates on completely different principles than governments work. It is very difficult for governments to control cryptocurrency. It does not directly interact with the state economy and, in fact, is alien to it. Also, cryptocurrency presents a certain difficulty for governments in collecting taxes on profits from this type of activity.

[Flor1982]

Crypto currency was a government threat before as it was used in illegal activities like money laundering and scams but now i don't see any direct threat to the economy anymore because most of the countries are now adopting the crypto as it was proven that it will bring prosperity but not misery to the government because it was carefully regulated.

[jakoylantern]

Crypto currency was a government threat before as it was used in illegal activities like money laundering and scams but now i don't see any direct threat to the economy anymore because most of the countries are now adopting the crypto as it was proven that it will bring prosperity but not misery to the government because it was carefully regulated.

Yes, I agree what you said, in the early year of bitcoin, many illegal activities come up using bitcoin, we all know the anonymity that bitcoin can give you and that the reason why many government sectors become threaten to bitcoin. But when many regulations and laws were created to secure the people's transparency, security, money, etc. the scams and frauds become lessen. Now the adopting come up, and many establishments embrace cryptos because they see the bright and helpful picture. 

[conected]

Governments really fear cryptocurrency, but not because it threatens their existence or carries another threat to them. Just cryptocurrency operates on completely different principles than governments work. It is very difficult for governments to control cryptocurrency. It does not directly interact with the state economy and, in fact, is alien to it. Also, cryptocurrency presents a certain difficulty for governments in collecting taxes on profits from this type of activity.

- Well, crypto does not threaten the existence of a government system but it threatens the interests and rules that the government establishes, and not only that, it also threatens the community that the government always protects, the people of a country, a lot of cases report that they have been scammed and lost their assets silly into crypto. The threats that crypto is creating are still being restricted by the government, if there is a surge in the near future, the government will probably have special treatment.

[Polar91]

Governments really fear cryptocurrency, but not because it threatens their existence or carries another threat to them. Just cryptocurrency operates on completely different principles than governments work. It is very difficult for governments to control cryptocurrency. It does not directly interact with the state economy and, in fact, is alien to it. Also, cryptocurrency presents a certain difficulty for governments in collecting taxes on profits from this type of activity.

- Well, crypto does not threaten the existence of a government system but it threatens the interests and rules that the government establishes, and not only that, it also threatens the community that the government always protects, the people of a country, a lot of cases report that they have been scammed and lost their assets silly into crypto. The threats that crypto is creating are still being restricted by the government, if there is a surge in the near future, the government will probably have special treatment.

I'm pretty sure that the government doesn't just see crypto as a threat to their existence, rules, interest, or community they are protecting. Government is still considering crypto to be legalized nationwide but they must assure first that its users must be protected by the law in case there's an abuse on using it. It surely takes time, a lot of studies, and experementation in which we can see from different countries. Sooner their perspective will be in favor for crypto once their evaluation has been completed.

[semobo]

Crypto currency was a government threat before as it was used in illegal activities like money laundering and scams but now i don't see any direct threat to the economy anymore because most of the countries are now adopting the crypto as it was proven that it will bring prosperity but not misery to the government because it was carefully regulated.

Fiat money were mostly used for any illegal activities compared to the crypto currencies then why they didn't think fiat as more threaten to their country? So this is not the reason why it threatens the government,only reason is decentralization and never can be controlled by anymore.

[jamesndungu1]

Majority of governments are taking the “wait and see” approach when it comes to adoption of cryptocurrency with the argument that adoption of this new technology could require considerable expenditures to adapt the already existing products and services. It will be difficult for governments to develop or even introduce new products and services at the lower prices that blockchain is offering which means a challenge in maintaining loyal customers. The idea of having full control over your own funds is also being embraced by the majority of people out there which governments see as threats to their banks. Governments should be threatened by this new digital currency as is could possibly eliminate all the centralization that is affecting most financial systems globally.

[Lizzylove1]

Cryptocurrency gives power to the people but fiat gives the government power and control, so they will have to see how to regulate it so they don't loss their control over the people. Once the government can't dictate your financial life, then you are free to a reasonable degree, at least you are not going to be living like a slave.

[plast555]

Governments really fear cryptocurrency, but not because it threatens their existence or carries another threat to them. Just cryptocurrency operates on completely different principles than governments work. It is very difficult for governments to control cryptocurrency. It does not directly interact with the state economy and, in fact, is alien to it. Also, cryptocurrency presents a certain difficulty for governments in collecting taxes on profits from this type of activity.

- Well, crypto does not threaten the existence of a government system but it threatens the interests and rules that the government establishes, and not only that, it also threatens the community that the government always protects, the people of a country, a lot of cases report that they have been scammed and lost their assets silly into crypto. The threats that crypto is creating are still being restricted by the government, if there is a surge in the near future, the government will probably have special treatment.

Absolutely I agree.

It should be added that the cryptocurrencies prevent the state from monitoring and setting rules for them. In the capitalist order, the free market economy is valid, but bureaucrats prevent individuals from being free by constantly restricting us and introducing new regulations.

Blockchain and it's future will be a revolution for all this.

[bitbunnny]

Cryptocurrencies do not represent a threat to governments and majority of them doesn't even think so. The thing is that they don't want to stop the progress that cryptocurrencies represent but they want that to be under certain conditions and one of them is regulation. In.modern societies everything is regulated in a way according to some rules in order to functioni properly within.society so cryptocurrencies are not exception.