Why Cryptocurrency threatens governments

[btcdie]

There are many reasons for this, but the most important reason is that the crypto currency cannot be tracked.
States don't like money they can't watch and they see it as a criminal potential. Another reason is that crypto coins are threatening banks. There is no need for banks due the cryptocurrency because the person can be his or her own bank. In addition, recently some crypto exchanges are seriously threatening banks due to some features. For example, lending and borrowing transactions beginning in binance

In most cryptocurrencies most transactions can be followed and tracked, so that is not really the reason governments do not like cryptocurrencies, what happens is that banks have control of the governments and they understand very well that they are threatened by bitcoin since you can be your own bank, they know that cryptocurrencies are not really that powerful at the moment but if things begin to go badly for the economy bitcoin could grow very rapidly and they want to prevent that.

You mean currency, in normal currency they can easily tracked down every single transaction that each user can be made. In cryptocurrency it will give them hard time knowing amd tracking each transaction that can be made. And most of illegal activities uses bitcoin or other cryptocurrency as their mode of payment due to that reason that it cant be or it will give government a hard time tracking its destination or source.

maybe I agree with you, tracking a transaction at the central bank is very easy to do by the government and can find out who is doing the transaction. different from blockchain technology (anonymity) the act of maintaining confidentiality, by not including the name in the informed consent and questionnaire, is enough with the initials and the address of the bitcoin wallet. it is very difficult for the government to find out the owner of the wallet address. even to send 1000 BTC to 100 bitcoin addresses in just a few minutes, even more than that.

[yurekaa]

I think the government does not like something that cannot be controlled. cryptocurrency cannot be controlled by anyone and free moves have no regulations. whereas the government is always authoritarian they always control the circulation of money through the central bank. and most governments reject cryptocurrency because crypto is anonymous and can be used for illegal transactions and also as a money laundering tool. they also fear that cryptocurrency can threaten national money.

[jets567]

Of course, potentially cryptocurrencies are competitors to the banking system and some governments are really afraid of the further development of cryptocurrencies and their global recognition. I believe that if it is reasonable and gradual to introduce technologies related to cryptocurrencies in the banking system, then we will all benefit from this.

If the banking system will adopt this chain it will bring a good help, the only issue is they are not in the position of seeing the potentials, they are afraid of this system as it can ruined the business. From that point the government fear that financial sabotage can be done by the help of cryptocurrency. Without control and jurisdictions money can flow around and it will be the safe haven for money launderers.

There are some banks who are now starting to make a lot of test of blockchain technology and tokenization for their own system but they never announce that they fully support Bitcoin or other cryptocurrencies. We all knew that in the past and until now cryptocurrency is sometimes used for illegal activities which is alarming for the government.

[Magkirap]

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?

Based on what I have observed, government always want to control every transaction happening and earn tax. Whereas with bitcoin it was anonymous and cannot track easily. Also, there is no additional payment that will charge by the government which we all know cost more money compared in crypto. In addition, When there is a business or something that doesn't charge by tax, the government will consider it illegal. Government always want a kickback.

[ecnalubma]

The government is not threatened by cryptocurrency, we must understand that their role is to protect us from bad actors who are taking advantage in unregulated industry. Tough regulations are implemented in order to protect the public interest and not just for the few, we are lucky that in most countries crypto is legal but unfortunate for those who ignore this technological change.

[ReiMomo]

The government is not threatened by cryptocurrency, we must understand that their role is to protect us from bad actors who are taking advantage in unregulated industry. Tough regulations are implemented in order to protect the public interest and not just for the few, we are lucky that in most countries crypto is legal but unfortunate for those who ignore this technological change.

Just because the government afraid to crypto that it will become their big competitor when it comes to financial investment. And of course, simply because the government finds it illegal because they don't have and access to it and they believe that cryptocurrencies are being used by drug lords and criminals in their illegal transactions the reason why it threatens the government and monitors all the movement of crypto.

[Xxmodded]

Bitcoin not threatens the government because bitcoin give best solution for seller or buyer if want to adopt bitcoin as payment transaction, if bitcoin become investment assets give benefit for investor get higher price with their investment. Threatens government by bitcoin is not true and not according what bitcoin want to give easy way for government with every transaction, bitcoin give transparent data for every transaction made by government to sent money to the other institution.

[panganib999]

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?

Main reason is cryptocurrency's decentralization. Cryptocurrency's freedom of will to have the control over itself threatens the power of the government to have the upper hand over everything especially about money. That's why there are countries that are completely against cryptocurrency because it makes people somehow separate from the grasp of the government, making the latter lose access of the money.

[virasisog]

Basically the top reason for me is i do not need banks to be a able to acces and withdraw my profits here on crypto.
Its all about the Control , people wants full access and control to what they own. But when you put your money on banks you lose that aspect.
Government are threaten i guess because they might lose control over the money of their people.

[Argoo]

In the meantime, the common opinion of the G-20 states and the European Union states is that cryptocurrency is not a threat to global financial stability, which means that governments should not be afraid of the existence of cryptocurrency. What will happen in this matter in the future, no one knows. For now, governments will establish general rules for cryptocurrency circulation and try to influence it from various angles. This will be a long process of confrontation. The cryptocurrency will also be improved and in another ten years we may not recognize it. I can’t even say - it will be good or bad. We just have to watch this process and, just in case, accumulate coins and tokens.

[Cnut237]

One reason that governments don't like crypto is because it is borderless. This can impact severely on their ability to control and direct their economy. Say the national government wants to increase interest rates by 1% ... how does this work when a large chunk of the economy uses bitcoin rather than the national currency? This is one of the objections they have to the Facebook coin. Crypto takes power away from governments.

[iv4n]

One reason that governments don't like crypto is because it is borderless. This can impact severely on their ability to control and direct their economy. Say the national government wants to increase interest rates by 1% ... how does this work when a large chunk of the economy uses bitcoin rather than the national currency? This is one of the objections they have to the Facebook coin. Crypto takes power away from governments.

Control is the right word for this topic, how can government control decentralized crypto? They can do nothing, they can`t cut it how they like, they will need to follow different rules. All government institutions, especially the ones that work in secret, will have a problem with using crypto, they can`t hide shit they make everyday, in decentralized network everything is transparent.
I agree with you, crypot takes power from government, little by little, until it takes all the power from them. I believe that will happen eventually, its the only way for this society to develop and make progress. It will benefit all the people!

[yulionoo]

in my opinion because the government is afraid that cryptocurrency can threaten a country's economic sovereignty. they are afraid that their fiat money will be defeated by crypto. and crypto will threaten their banking system. and also some governments are also afraid of cyptocurrency being used for crimes such as money laundering, drug trafficking and terrorist financing. the anonymous nature of cryptocurrency will be difficult to trace. I think that is some reason the government rejects cryptocurrency.

[Colt81]

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?

The reason why cryptocurrency threatens by the government because cryptocurrency is decentralized that they could not control it and some goverments in a country finds cryptocurrency illegal that they think it is not profitable. Which in not true, the only reason why other people finds cryptocurrency as illegal because there are some people who really use it to scam or trick other people.

[BennyK]

The governments are afraid of cryptocurrency because they have the idea that cryptocurrency rips them off the power to own absolute control over the financial transactions of the people. The banks feel same as well. This is largely due to the decentralized nature of crypto which gives the power to the people to own control over their own transactions without third party interruptions.

[EdvinZ]

Governments will accept cryptocurrencies when it will be profitable for them, when they will be able to control their turnover. States can't afford to have uncontrolled money in the course of the population. This could be the beginning of economic instability and banking services would be in less demand. Thus, it is logical to assume that States will try to introduce their own centralized digital money.

[TRONTON]

the government will not have full power anymore if crypto is widely adapted without their role, the only thing that is important is to provide space for exchange management, including making crypto currency itself as a major pair accommodating fiat in crypto, this has already begun to happen in Japan.

banks must also begin to adapt to crypto, or they will lose people's interest due to the increasing knowledge of crypto users.

[ringgo96]

Governments will accept cryptocurrencies when it will be profitable for them, when they will be able to control their turnover. States can't afford to have uncontrolled money in the course of the population. This could be the beginning of economic instability and banking services would be in less demand. Thus, it is logical to assume that States will try to introduce their own centralized digital money.

But actually there will also be a threat if more cryptocurrency is known by people. we know that crypto runs unattended and prices follow market demand. the fear is that if there is a bubble there will be an unstable economy for some countries that have invested a lot or vice versa.

[agentx44]

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?

We cannot really blame the government for being too careful, we all know how secured and anonymous the users of crypto are and that will always going to be that way no matter what. We can also see it as a decentralized currency so it is normal that the government doesn't have a hold on it. There will be a lot of adjustments first before crypto gets accepted by the government, we should just be very patient about it if we want it to happen for real, but if not, we should just be contented on what we have now cause our investments would totally change if crypto gets legalized.

[Darooghe]

I think what governments are trying to do is what is their job, ensure that people are not scammed, deal with criminal activities, etc. Bitcoin is sometimes used in illegal transactions. It is also a way that sanctioned Russian/Iranian billionaires can move money from Rubles/Rials into Dollars. The banks/governments don't want to deal with those investigations. They don't want to have to watch your tiny little consumer account for signs of international money laundering just because they know you deal with bitcoins. Honestly, they'll do the same to you if you come in with bags of cash every week unless you can give them a legal reason for your earnings. In my opinion, governments do not treat bitcoin as a threat to survival but as a duty.