Will Governments Ever Accept Blockchain-Based Cryptocurrencies?

[Indrawan77]

Well it depends on the government point of view , one of the disadvantages is the decentralisation, if the government cant supervise then it can't be taxed and it could be a hole for the criminal to do bad things, but from what I see eventually bitcoin got a big chance to be adopted, maybe it will be adopted with regulation, but it will surely need time to see how the governments going to react

[guoyu78]

Well it depends on the government point of view , one of the disadvantages is the decentralisation, if the government cant supervise then it can't be taxed and it could be a hole for the criminal to do bad things, but from what I see eventually bitcoin got a big chance to be adopted, maybe it will be adopted with regulation, but it will surely need time to see how the governments going to react

If they can regulate it, I think taxing won’t be an issues, every country works based on constitution, and if a citizens fails to abide by such constitution, it becomes a criminal offence which the person will be penalized for, and citizen keeping this in mind will not want to be penalized and abide by rules.

Rather than rejecting the system, they should have come together to see how it can benefits them and I am sure most countries that has not completely ban the use of crypto so far, has already seen that it doesn’t pose any form of threat to them, because Fiat will still always be used. Many people will either change fiat to BTC or BTC to Fiat which will still pass through their table for any tax they wishes to do.

[Idrisu]

Government has been against cryptocurrencies development including those countries that has been supporting technologically advanced.  I see the area governments is against cryptocurrencies as decentralisation.  If cryptocurrencies and blockchain technology is not decentralized our governments could have been involved in it.

[Supercrypt]

Most government that lives on their citizens savings will not legally accept BTC, they usually use some of their savings as loan to other countries to get interest and other things they could use it for in the meantime, but looking at crypto, they cannot control it, and they feel it will make them powerless since they can no longer use money as control tool.

The thing they have forgotten is that, if they legalize bitcoins, most people will be bold to operate it which will be open to government, for the fact that it is a decentralized system doesn’t mean that it will tamper with the law of the land, the Law of each government will always put people in check and they will still gain relevance even if they can’t control it.

[jvdp]

Government has been against cryptocurrencies development including those countries that has been supporting technologically advanced.  I see the area governments is against cryptocurrencies as decentralisation.  If cryptocurrencies and blockchain technology is not decentralized our governments could have been involved in it.

We cannot say all the government against the crypto technology but people are more enthuastic to invest the fund and learn more blockchain development. We could show the adoption of Estonia which accepts the E-governace in blockchain technology.
Or we can see the activities of Japan over crypto currency investments. They have accepted bitcoin to use everywhere in the country.

[TomArayaSlaya]

It all will depend on how much impact is making in the community around the government The way i see it is that they are basically working for the people and ones there is adoption is like there will be no other option but surely is going to take some time to create

[Ultimist]

They'll have no other choice. Eventually, almost all countries will be forced to accept crypto. Because I believe that soon she very densely will enter our life and all people will use it.

[BUK2016]

One cannot be optimistic as to whether government will accept crypto currency or not but what I have to add to all the comments above it that time will tell because we are very much aware that is not an easy task for government to accept what they don't have the control over as the medium of exchange for goods and services.

[Seeker#9]

Governments might accept decentralized cryptocurrencies in the future if they find better and effective ways in imposing tax on the blockchain-based currencies. Several governments also believes that blockchain technology can help improve the services of every department or ministry. Accepting cryptocurrencies to run in their economies may not be possible today because of their decentralized nature but a solution can still be possible in the future.

[wuvdoll]

In what way exactly? I mean Ohio is accepting the taxes to be paid in bitcoin so the short answer will be "they are already doing that" and this topic will be closed. If you want more places to do that than you have to wait for it, Rome was not built in one day, if you want further acceptance you will have to wait even longer. If you just want official government decree that says bitcoin is legal and can be used than Ohio already done that.

Basically all governmental and legal stuff takes time, even non-bitcoin related stuff take time honestly because governments do not work like companies, you have to go through a lot of paper work and signatures and meetings etc etc which takes a lot of time. That is why I think bitcoin will be accepted by every single government but it may take more than 10 years to reach there.

[emmybd]

The way cryptocurrencies have been getting popular all over the world, the day is not far away when the governments would also be forced to accept it in some form or other. Many large corporations and financial institutions have already started adopting it.

[sehoon]

I think they will accept it but it's going to be a long process since it is decentralized and they can't just tax it. Blockchain is a top technology right now. And there is no problems when it comes to applying it. But when cryptoccurency is in the equation, I think the government will have a doubt on it. And also, even the regulation can hurt us especially when we don't like their conditions.

[pundit]

Due to decentralize nature it is not possible to track transaction on blockchain, this is one of the reason govts are not interested in making Bitcoin a legal currency, implementing taxes on bitcoin transactions is bit difficult in this case but there should be some wayout if govts try to accept Bitcoin and other popular cryptocurrencies. Another reason behind non acceptance of Bitcoin is it may badly hit the banking sector of any country as transactions of blockchain is easy, secure, cheap and fast, may be due to this fear most of the govts are not interested in accepting Bitcoin as of now.

[whirlcoin]

At present, Bitcoin and several other forms of cryptocurrency are at least partly regulated by world governments. In fact, cryptocurrency is only illegal in a handful of countries including Bolivia, Sri Lanka, Ecuador, and Vietnam. The only question is, will world governments ever really recognize coins like Bitcoin as legal tender?

What Does Acceptance Mean?

For the most part, mainstream government acceptance of Bitcoin and other cryptocurrencies is a non-issue.

In the United States, Europe, and the UK, it is already possible to buy everything from a cup of coffee to a family home using cryptocurrency. What many people, therefore, mean when they ask if cryptocurrency will ever become more widely accepted is, will governments themselves ever transition to using digital currency?

Why Governments Won’t Transition to Blockchain-Based Cryptocurrencies as we Know Them

For the foreseeable future, it is unlikely that governments will ever consider cryptocurrency equivocal to government-issued fiat cash. Moreover, this is mostly due to the potential for tax avoidance.

In the United States alone only 100 people out of a sample size of 250,000, could be evidenced as declaring cryptocurrency capital gains on their 2018 tax return. What is more, decentralized cryptocurrencies like Bitcoin interfere with more than just tax collection:
Privacy coins like Monero are still used to facilitate crime and other dubiously legal clandestine activities
Decentralized mining of coins like Bitcoin, make it impossible for governments to control their own money supply and policy
Cryptocurrency is still not backed by anything tangible
Digital currency is inherently deflationary, whereas governments depend on inflation to encourage economic growth

A much more significant problem also rests with the fact that many governments still don’t fully understand how coins like Bitcoin work.

Governments May Become More Accepting of Cryptocurrency Eventually

While world governments might be unwilling to embrace cryptocurrency itself, the same is not true for the blockchain technology which underpins how coins like Bitcoin work.

At present, the UK and the United States already settle international payments via a Ripple XRP payment gateway. Moreover, the Ripple Foundation is regularly invited to attend major economic summits like Davos and Europan Central Bank conferences discussing the future of retail payments.

Governments Don’t Like Decentralization

In Venezuela and Zimbabwe at present, out of control hyperinflation is resulting in rapidly declining living standards. In both cases, the official adoption of cryptocurrencies like Bitcoin could help tackle hyperinflation head-on. However, governments don’t like centralized coins. Hence why Venezuelan President Nicolas Maduro has insisted on creating his own national form of cryptocurrency, the Petro.

Government Issued Cryptocurrencies May Eventually Become Commonplace

While it might be difficult for Bitcoin purists to accept, the first step toward national acceptance of cryptocurrency will likely rest with governments issuing their own centralized blockchain. Coins like Venezuela's Petro may, therefore, eventually become commonplace. However, top coins like Bitcoin will likely survive as they do now on the regulatory sidelines.     

yes you are right symbol it will be easily acceptable currency by the each and every government in this world but the complication will be created from the country and the government and also the banks in their country so they think if it was entered into their country the own normal currency will be reduced in value that's where the problem is going to accept under refused crypto field

[Siren]

WHat can we expect from those countries?and why botherby this when in some other countries things are different,unless you are from those mentioned countries then its your responsibily to seek for answers but I don’t really take this to consideration as a problem because in the near future they will regret this as the benefits for their people has heen denied for long

[fasdorcas]

Well it depends on the government point of view , one of the disadvantages is the decentralisation, if the government cant supervise then it can't be taxed and it could be a hole for the criminal to do bad things, but from what I see eventually bitcoin got a big chance to be adopted, maybe it will be adopted with regulation, but it will surely need time to see how the governments going to react

From a user point of view, it is best in the interest of us all if this remains decentralized and not regulated but if a government is interested in the technology, she would regulate it regardless of when the users want. But, it is okay I think because it is already in wide use in the US and is strictly regulated. Canada has accepted and regulated the blockchain technology as well and the country is making immense innovations.

I guess, in near future itself, almost all the governments will reveal their stand on cryptos and most probably that would be in positive way as per how fast blockchain technology is gaining recolonization among banks and other finance related organizations.

[ecnalubma]

I do not know about other governments, but the government in my country is totally against crypto. Even they have stated to arrest people who are found in trading and mining business. Although these steps cannot prevent people to stop using crypto but overall this is not a good step for the governments.

They should accept the challenge of crypto currencies rather than just blocking it.

Well that’s not fair, but sometimes we need to understand how government works. Sometimes lawmakers are conservative, selfish and close minded but only if they could understand how cryptocurrency works then they should loosen their ties.

[vit05]

Maybe we can move to a world where governments work for society rather than against it. If for people the cryptocurrencies represent a breakthrough, why would governments continue to hamper their adoption?

I think cryptocurrencies will first have an impact on small and poor countries. And by demonstrating that it is an advance, democratic and rich societies will accept its use without restrictions.

[dothebeats]

Luckily from the country I'm in currently, we have 4 exchanges all regulated and allowed by the government to operate at will, provided that they have proper SEC certification and have complied with the rules and regulations set for financial services. The government had been pretty much open for cryptocurrency services and cryptocurrency per se that they have released quite a handful of positive memos regarding the state of the said financial tools. There will come a time that governments would soon accept cryptocurrencies if most countries have already started accepting it within their own soil.

[shesheboy]

Due to decentralize nature it is not possible to track transaction on blockchain, this is one of the reason govts are not interested in making Bitcoin a legal currency,

Why not ?  It is possible to track btc transactions on the blockchain . you can do that by clicking the public address of the person that you want to track   . bitcoin is not also illegal on most countries . they already accept bitcoin even bitcoin is decentralize  .

implementing taxes on bitcoin transactions is bit difficult in this case but there should be some wayout if govts try to accept Bitcoin and other popular cryptocurrencies.

Like what i said earlier . bitcoin is already legalize on almost 110 plus countries all over the world including ours but i dont notice that the people on our country are being tax . sure we can pay our tax if we wanted to but not all are willing because most people here on our country are only poor .

Another reason behind non acceptance of Bitcoin is it may badly hit the banking sector of any country as transactions of blockchain is easy, secure, cheap and fast, may be due to this fear most of the govts are not interested in accepting Bitcoin as of now.

This what im also thinking before but not now because like i said earlier , governments and banks are now been teaming up with bitcoin .