Why Cryptocurrency threatens governments

[HarmonyA]

Cryptocurrency enables individuals to control their money. Unlike Centralized Money (Fiat), where the government has full control over how you use it. Placing limits on withdrawal and monitoring the manner at which we spend money. This enables the government to make more money by placing charges which are sometimes outrageous on the user of banking services. Therefore, seeing crypto who has come to disrupt the traditional financial system would not be allowed by the government except they put some regulations that won't hamper with their business with fiats.

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[bitbunnny]

Cryptocurrency threatens the governments by the way of their design. Cryptocurrency is designed to be decentralized and it is a powerful feature for a financial system because it takes of the middle man like the banks, government etc. and that causes to fully transfer the power to people and the people really love taking full control of their actions and that is why government are threatened by the cryptocurrency in terms of replacing the fiat currency.

It's true that Bitcoin is all about decentralization and sice governments and their institutions are centralized by nature they are in some kind of colition
However, I wouldn't say that cryptocurrencies are threat  to governments and in majority of cases they don't think that way about cryptocurrencies. This is kind of exaggerated theory.
Governments are aware that cryptocurrencies have become a part of their  societies so now they are trying to find the way how to put them into framework. That is how I see it.

[Peashooter]

Simply because cryptocurrency is a global currency in which anyone around the world can use it when all the people start to use cryptocurrency the government will be afraid of it because they cannot control the producing of crypto even the banks can't control it so that may probably the main reason why the government are afraid of. They will lose the control of the world bank and etc.

[Aying]

Simply because cryptocurrency is a global currency in which anyone around the world can use it when all the people start to use cryptocurrency the government will be afraid of it because they cannot control the producing of crypto even the banks can't control it so that may probably the main reason why the government are afraid of. They will lose the control of the world bank and etc.

But China want to make their own cryptocurrency. is this the start of regulation of crypto? Government now a days are just afraid of bitcoin. bitcoin is like a freedom that not a single person can control but if the government make their own move and create their own crypto. maybe our perspective will change and maybe we will afraid of this changes.

[sirminesalot]

Simply because cryptocurrency is a global currency in which anyone around the world can use it when all the people start to use cryptocurrency the government will be afraid of it because they cannot control the producing of crypto even the banks can't control it so that may probably the main reason why the government are afraid of. They will lose the control of the world bank and etc.

it's true maybe that's the reason why in my country the crypto currency is still not recognized by the government but everyone holds the crypto currency but still the government will still be in full control of the country's economy and finance and if mutual cooperation might become an advanced system and develop later

[yulchatar]

Many countries began to be loyal to cryptocurrencies, and some even use officially (Venezuela). But most governments nevertheless set cryptocurrency under a ban due to the inability to control it. This is the main reason for the lack of mass adoption today.

[juperos]

The government's job is to control everything in your country, they don't like the uncontrollable things, from the internet or the banking system, everything is monitored by the government and it is impossible for bitcoin manipulation because it is a decentralized system, in addition to the transaction is not taxed or disclosed personal information, it can lead to money laundering actions, which can damage the country's exchange rate ... so accepting cryptocurrencies is not yet possible, but I believe that in the near future the government will see how big the benefits of cryptocurrencies are and maybe they will amend laws to make cryptocurrencies legal.

[crisanto01]

The government's job is to control everything in your country, they don't like the uncontrollable things, from the internet or the banking system, everything is monitored by the government and it is impossible for bitcoin manipulation because it is a decentralized system, in addition to the transaction is not taxed or disclosed personal information, it can lead to money laundering actions, which can damage the country's exchange rate ... so accepting cryptocurrencies is not yet possible, but I believe that in the near future the government will see how big the benefits of cryptocurrencies are and maybe they will amend laws to make cryptocurrencies legal.

Let's also remember that governments are just there to protect all of us, it is not because they are too greedy that they can't control it so they can't regulate it, but they just wanted to protect those people especially who has lack of knowledge in investing, as we all know it is very hard to accused scammers and file a case to them, so let's just understand them in a positive way.

[sapnu]

The government's job is to control everything in your country, they don't like the uncontrollable things, from the internet or the banking system, everything is monitored by the government and it is impossible for bitcoin manipulation because it is a decentralized system, in addition to the transaction is not taxed or disclosed personal information, it can lead to money laundering actions, which can damage the country's exchange rate ... so accepting cryptocurrencies is not yet possible, but I believe that in the near future the government will see how big the benefits of cryptocurrencies are and maybe they will amend laws to make cryptocurrencies legal.

Let's also remember that governments are just there to protect all of us, it is not because they are too greedy that they can't control it so they can't regulate it, but they just wanted to protect those people especially who has lack of knowledge in investing, as we all know it is very hard to accused scammers and file a case to them, so let's just understand them in a positive way.

Maybe that is because the government cannot regulate the cryptocurrency, because we all know that cryptocurrency is decentralized meaning there's no one or any organization or group of people that are controlling crypto. Since it is decentralized they do not know where to give taxes, maybe they could give taxes in some bank that we used when we are actually withdrawing it and convert it into fiat. The regulation of cryptocurrency itself is hard for the government since we are earning online, the idea is that we are making money in a digital world wherein it can be access online all over the world wherever you are, you just need an internet access.

[rmhuntley]

The development of cryptocurrencies as time goes unavoidable. So the government over time will accept cryptocurrencies such as the Chinese government that has announced crypto legal for its country.

[DeathProxy]

The core feature of blockchain technology and cryptocurrency is its decentralized nature which gives total and full control to its users allowing them to be in control and responsible for their own funds.  While on the other hand the government likes being in control of the economy and all funds and all financial transactions of its people and given to this the government interest and crypto core feature do not fully align as crypto won't allow the government to be in control of people transactions

[Kevondo]

The government's job is to control everything in your country, they don't like the uncontrollable things, from the internet or the banking system, everything is monitored by the government and it is impossible for bitcoin manipulation because it is a decentralized system, in addition to the transaction is not taxed or disclosed personal information, it can lead to money laundering actions, which can damage the country's exchange rate ... so accepting cryptocurrencies is not yet possible, but I believe that in the near future the government will see how big the benefits of cryptocurrencies are and maybe they will amend laws to make cryptocurrencies legal.

Governments of the advanced countries to understand importance of cryptocurrencies and this is the whole reason why they are planning to launch their very own digital coins. They are the future of money and cannot be ignored. The reason behind resisting bitcoin legalization is fear to lose control. This makes a lot of sense. Like you have already said, authorities do not like to lose their power.

[juperos]

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

Indeed, cryptocurrencies are a decentralized, anonymous currency when trading, so the government is very afraid of this because they will not control it. Also its appearance may affect the flat currency, damaging the country's exchange rate. No one knows in advance what the future is, whether electricity will be legal, but for the time being I haven't seen any effective solution for the government to accept it, maybe we need to have a bigger revolution.

[OrangeII]

Simply because cryptocurrency is a global currency in which anyone around the world can use it when all the people start to use cryptocurrency the government will be afraid of it because they cannot control the producing of crypto even the banks can't control it so that may probably the main reason why the government are afraid of. They will lose the control of the world bank and etc.

not being able to control crypto is one of the reasons the government rejects crypto. Another reason is that most cryptocurrency is decentralized, has no taxes, can disrupt a country's economic ecosystem, can be used as a means of money laundering, and many other reasons that you can find in the news on the site that discusses crypto.

[binhvo1505]

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

I think this is very difficult and probably will not happen. I only hear many governments around the world praising blockchain technology, besides I don't see them talking well about cryptocurrency. why? because it is one of the best money laundering tools for sharks that the government cannot control. That's why many governments ban crypto and China is also closing down a series of crypto businesses. 173 enterprises have ceased operations and the next will be more than other garbage businesses.

[Shimmiry]

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

I think this is very difficult and probably will not happen. I only hear many governments around the world praising blockchain technology, besides I don't see them talking well about cryptocurrency. why? because it is one of the best money laundering tools for sharks that the government cannot control. That's why many governments ban crypto and China is also closing down a series of crypto businesses. 173 enterprises have ceased operations and the next will be more than other garbage businesses.

The government is accepting the use of cryptocurrency there are a lot of countries now are supporting the use of crypto to make their transactions faster and less hassle to transferring money, today they are trying to improve their country by adapting into the technology. This kind of action has a massive impact on the crypto world because they might affect the transaction and lessen the physical money, although it is suitable for the improvement, in the digital world no system is always protected, even the most secure system, and servers got hack by the intruders.

[sarmrakib]

Its really tough to say that will government really accept btc . There are many things behind that one of the major thing is that government think about the security of the transaction and they really don't know about the technology .I need government need to study on btc and appoint Blockchain and crypto expert to maintain the whole thing .If government try to step up on btc definitely they will not think that this currency is threaten for country.

[White Christmas]

Actually one of the main reason why the government wants to ban and put a limitations between the using of cryptocurrency and blockchain technology is because they are afraid to the people who are open minded nowadays and have a knowledge on what cryptocurrency and blockchain is. The government are afraid that when the cryptocurrency accepted by the people then it would be possible a global currency in which the government cannot control the flow of the money all over the world. We already know that the government was the one who controls the money system in the country so when the crypto becomes the global currency then it would be a problem for them because they will not be able to control the money because of the reason that crypto is decentralized.

[Gheka]

Actually one of the main reason why the government wants to ban and put a limitations between the using of cryptocurrency and blockchain technology is because they are afraid to the people who are open minded nowadays and have a knowledge on what cryptocurrency and blockchain is. The government are afraid that when the cryptocurrency accepted by the people then it would be possible a global currency in which the government cannot control the flow of the money all over the world. We already know that the government was the one who controls the money system in the country so when the crypto becomes the global currency then it would be a problem for them because they will not be able to control the money because of the reason that crypto is decentralized.

The government may be afraid of people knowing what blockchain and crypto technology is but the reason is not that they are afraid of people accepting crypto as a global currency, the reason is that they lack management in this new technology, they cannot control the volume and flow of money as you say. And this may be an opportunity for countries with the ambition to attract cash flow of other countries, economic war will again occur and it is a threat that makes the government want to handle crypto

[GideonGono]

Actually one of the main reason why the government wants to ban and put a limitations between the using of cryptocurrency and blockchain technology is because they are afraid to the people who are open minded nowadays and have a knowledge on what cryptocurrency and blockchain is. The government are afraid that when the cryptocurrency accepted by the people then it would be possible a global currency in which the government cannot control the flow of the money all over the world. We already know that the government was the one who controls the money system in the country so when the crypto becomes the global currency then it would be a problem for them because they will not be able to control the money because of the reason that crypto is decentralized.

The government may be afraid of people knowing what blockchain and crypto technology is but the reason is not that they are afraid of people accepting crypto as a global currency, the reason is that they lack management in this new technology, they cannot control the volume and flow of money as you say. And this may be an opportunity for countries with the ambition to attract cash flow of other countries, economic war will again occur and it is a threat that makes the government want to handle crypto

I think the purpose of Bitcoin isn't about engaging the world in an economic war but rather to provide freedom to the users. Through Bitcoin, we were able to trade freely especially when the product is not locally available and also if it exist online. This I think is one of the ways to utilize Bitcoin. We can observe the news that major countries around the world are pondering about the idea of blockchain and accepting the fact that they can't truly control it that's why they are considering to release their own cryptocurrency backed by their central bank and even gold.