The Role of Government in Crypto

[Shenzou]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will government regulations on cryptocurrencies undermined crypto decentralized nature?

Sure governments ensure that things go in a certain guideline and following the rules, and sure you can say that cryptocurrency may in some way do the same, but the anonymity and the irreversible nature of the transactions that are made by cryptocurrency make it hard to control where to and for what purpose those transactions are going to, even though fiat don't  that way but at least there is some form of surveillance and control over criminal and illegal transactions.

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[Clavulanic]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will government regulations on cryptocurrencies undermined crypto decentralized nature?

I think that difficult for those countries that has a strong issues against bitcoin, which I believed conflicts will tend to eradicate if this was pushed towards decentralization.
Physical currency has been doing well for so many years eversince the start of its existence towards every people who learned to use it.
Considering it as legal currency isn't a problem, but what I am about to make it clear is the approach of the government on how it's going to be possible easy for them to adopt this current system; except for the countries who already allowed cryptocurrency on their economy.

[Silberman]

will government regulations on cryptocurrencies undermined crypto decentralized nature?

The government will be able to implement regulations and prohibitions towards crypto even it is decentralized in nature. Have you seen what just happened with Monero?
It was delisted in many exchanges due to governments action.

Without a doubt the actions of the government can and will shape this market, after all we are not in a bubble and we cannot do whatever we want in this market, however the fact that bitcoin was created as a decentralized currency means that no matter how powerful governments can be they can not completely regulate this market as they would want, this means that for the user that is completely determined to keep their privacy there are still ways to do it and this seems as if it is going to be the case for the foreseeable future as well.

[Twinkledoe]

I see regulations in a country, they only regulate crypto commodity trading regulations, the reason is for security, because they reveal one example of a circulating case that many crypto asset traders take away customer money, and this is their concern so that domestic investors can be guaranteed its security is because there is a guarantee for the security of customer money, through a clearing house.

There are still many things that are not known about crypto, besides the crime of exchanges taking consumer money, security is the most important thing, we often see the fact that many projects are hacked so they have to change address contracts.

But some of them are inside job. This is why it is hard to trust some platforms because they can rug pull anytime. This is what some people are afraid of with crypto, particularly those new ones. They don't know what project they can trust and how they can have assurance that they will not get rekt. Regulation has positive impact but the government should know what kind of regulation protocol they need to implement.

[RILWAN]

I know the government will always come up with different conspiracy theories and policy to regulate cryptocurrency, which will not work out 100% because of the decentralized nature of most cryptocurrency like bitcoin, but some of the government's own centralized cryptocurrencies may get some form of regulation.

[arwin100]

I see regulations in a country, they only regulate crypto commodity trading regulations, the reason is for security, because they reveal one example of a circulating case that many crypto asset traders take away customer money, and this is their concern so that domestic investors can be guaranteed its security is because there is a guarantee for the security of customer money, through a clearing house.

There are still many things that are not known about crypto, besides the crime of exchanges taking consumer money, security is the most important thing, we often see the fact that many projects are hacked so they have to change address contracts.

 This is what some people are afraid of with crypto, particularly those new ones. They don't know what project they can trust and how they can have assurance that they will not get rekt. Regulation has positive impact but the government should know what kind of regulation protocol they need to implement.

Don't know how they do it but if they impose the regulation towards crypto then I think we should accept it since for me it can help us filter those scams and provably we can see the dominance of legit projects coming ahead. Maybe lets forget about those possible taxes they want to implement and we should see the level of protection it can possibly give us. little percentage take on our balance for sure cannot hurt our pockets.

[oHnK]

I see regulations in a country, they only regulate crypto commodity trading regulations, the reason is for security, because they reveal one example of a circulating case that many crypto asset traders take away customer money, and this is their concern so that domestic investors can be guaranteed its security is because there is a guarantee for the security of customer money, through a clearing house.

There are still many things that are not known about crypto, besides the crime of exchanges taking consumer money, security is the most important thing, we often see the fact that many projects are hacked so they have to change address contracts.

 This is what some people are afraid of with crypto, particularly those new ones. They don't know what project they can trust and how they can have assurance that they will not get rekt. Regulation has positive impact but the government should know what kind of regulation protocol they need to implement.

Don't know how they do it but if they impose the regulation towards crypto then I think we should accept it since for me it can help us filter those scams and provably we can see the dominance of legit projects coming ahead. Maybe lets forget about those possible taxes they want to implement and we should see the level of protection it can possibly give us. little percentage take on our balance for sure cannot hurt our pockets.

However, the government will not be easy to accept the presence of crypto because with this authority, the rights of the government are limited.  How can humans not be disturbed when their rights are limited.  When massive crypto is used I firmly believe, no one will care about the government in a financial context because of the convenience that Crypto has offered.

[Bustart]

In what way do cryptocurrencies coexist with banks? These are completely different systems, and nor they can, nor should coexist.
Cryptocurrencies can and, in fact, are functioning without governmental regulations in many countries, while still remaining at the status of legal (check wiki list for crypto legality by countries), only few impose bans or taxes.

They only impose taxes at exchanges not really on crypto itself because of it decentralized being, and government function was only to regulate the incoming and outgoing transactions of fiat currency. They can't took control everything in cryptocurrency, because it was separated from the state governance, but if it talks about fiat they're always dominant on that.

[ultrloa]

will government regulations on cryptocurrencies undermined crypto decentralized nature?

what kind of regulations are made for crypto? if the regulations are not good and not mutually beneficial maybe crypto will lose and for sure these regulations will damage the market. The most important thing is that these regulations must have a mutually beneficial effect on the market

It will lose if certain individuals in government doesn't understand on how crypto works and might they will give bad impression on it especially the market is so volatile and unpredictable. But if experts will held this regulation and create legal laws regarding on how they can fight frauds or have systematic tax implementation maybe from that we will not get any problem with those upcoming regulations.

[inanilujimi]

In crypto all transactions are clear, immutable by anyone and traceable, so what else does the government want to regulate?
if the rules are made at least they should benefit both without bringing each other down. and I personally will follow the rules if made well.

[GeorgeJohn]

Actually government have a vital roles to play over the economy of her country, because the betterment of any country development lies on the hands of those prominent leaders that controls or regulate the economy resources of any country, right now i haven't seen any positive impact government innate for the development of cryptocurrency, rather to diversify a means that will cripple cryptocurrency, more especially those countries that restrict a transaction of cryptocurrency with central banks, i can as well say that banks really wants crypto to escalate through transaction process of conversion of fiat via buying and selling crypto at easily form, but government used their veto power to bridge them in some of the countries, so with this scenario government is of no help to cryptocurrency roles.

[AicecreaME]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will government regulations on cryptocurrencies undermined crypto decentralized nature?

To answer frankly, yes, the government regulations on crypto exhibits a large possibility of subverting the decentralized nature of cryptocurrencies. If the government will be able to set policies that state the do's and don'ts on the users' funds, it will seem to be defeating the purpose of crypto originally. Government really plays a great role in crypto most especially in the legality part of cryptocurrency in a specific country. If the government is close-minded and isn't open to exploring and discovering new things that could benefit their constituents, there is a high tendency of making anything related to crypto illegal. On the other hand, if the government is open to wider possibilities and isn't traditional like the usual politicians, then it will be a great thing for the citizens because they can move freely without the fear of being reprimanded by the law whenever they are using cryptocurrencies on their transactions and investments.

[RILWAN]

The truth is no currency can exist in an economy without government involvement, but cryptocurrency as a decentralized currency have broken that factor of government hold on the economic life of it citizen.

[geegaw]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will government regulations on cryptocurrencies undermined crypto decentralized nature?

To answer frankly, yes, the government regulations on crypto exhibits a large possibility of subverting the decentralized nature of cryptocurrencies. If the government will be able to set policies that state the do's and don'ts on the users' funds, it will seem to be defeating the purpose of crypto originally. Government really plays a great role in crypto most especially in the legality part of cryptocurrency in a specific country. If the government is close-minded and isn't open to exploring and discovering new things that could benefit their constituents, there is a high tendency of making anything related to crypto illegal. On the other hand, if the government is open to wider possibilities and isn't traditional like the usual politicians, then it will be a great thing for the citizens because they can move freely without the fear of being reprimanded by the law whenever they are using cryptocurrencies on their transactions and investments.

Government is the convergence of the quintessence of regulation as well as the protection of common rules, they feel they are the key players and they need to hold the key to influence, with the request to get into crypto, they are definitely headed for the important position and decentralization here has almost halved, transferring ownership to the government. The government is only open to economic interests and crypto is possible for that but their regulatory perfection becomes too mechanical and causes little volatility

[magneto]

Regardless of what sort of government regulations get imposed, they are not going to affect the autonomy of any decentralised crypto.

Fact of the matter is that crypto's decentralised nature is really backed up by hard code, and there is no one that can change that. Even if economies that have huge crypto holdings and control most of the hashpower decide to ban bitcoin (e.g., China), they are not going to affect how this is run.

The government has no business, nor ability, to run any decentralised blockchain unless they control all the hashpower (impossible). So that's that.

[inoes]

as long as you use Blockchain, the crypto currency remains Decentralized.  even though it is managed by the government, the most important thing is that the government cannot fully manipulate prices or control them.  cooperate only on regulation.  such as taxes, insurance and security.  I think it will have a positive impact so that people feel safe and protected

[pinggoki]

Governments do need to regulate and officially legalize a system or an earning program in order to have it operate within the borders of its country, but the thing is, most cryptocurrency are decentralized and do not abide by a border to operate, which makes it hard for them to be regulated by a single government, since there is no one to coordinate with in the cryptocurrency end of the spectrum. Then again if they are to find a way around this in the future, this will pretty much resolve some of the adoption issues that we are still facing and make cryptocurrencies more accessible to the general public.

as long as you use Blockchain, the crypto currency remains Decentralized.  even though it is managed by the government, the most important thing is that the government cannot fully manipulate prices or control them.  cooperate only on regulation.  such as taxes, insurance and security.  I think it will have a positive impact so that people feel safe and protected

Exactly, but the government being the government, would not allow such eventualities to occur within its borders, no matter how rigged or corrupt the general population think this is. In order to fully operate within its borders, there has to be some sort of recognition on the government's end allowing cryptocurrencies to operate under the government's watch, otherwise legal issues involving cryptocurrencies will not be backed and supported by the government.

[herurist]

Regardless of what sort of government regulations get imposed, they are not going to affect the autonomy of any decentralised crypto.

Fact of the matter is that crypto's decentralised nature is really backed up by hard code, and there is no one that can change that. Even if economies that have huge crypto holdings and control most of the hashpower decide to ban bitcoin (e.g., China), they are not going to affect how this is run.

The government has no business, nor ability, to run any decentralised blockchain unless they control all the hashpower (impossible). So that's that.

the point is that the government can't do anything when we use blockchain in the sense that the government can't touch or create a monopoly here because we are still using blockchain with a decentralized system.
but what the government can do is make regulations for this so they can at least control it even if only a little.
but this is the only option that the government can run considering that the decentralized system cannot be touched by anyone what they can do is with regulations that can benefit them such as in taxes etc.

[South Park]

the primary role of government is to provide a regulatory framework in an economy, Government sole responsibility is to provide a guideline on how thing are to be done within their jurisdictions.

this is not different with cryptocurrency although cryptocurrency is created with high anonymous the truth remains that cryptocurrency co-exist with other factors in the economy such as the bank and the traditional currencies, for crypto to become a full flesh currency it need to under go government regulation because that is the only way cryptocurrency will be considered a legal currency.

questions:

will government regulations on cryptocurrencies undermined crypto decentralized nature?

I don't think the government regulations are going to have a huge negative effect on the decentralized nature of cryptocurrencies and could in fact make them more decentralized, and the reason for that is because even if governments passed certain laws that affects a part of this market that is centralized, like exchanges, then the community is going to develop new technologies to allow them to trade in a decentralized manner, and we are already seeing this in the centralized exchanges.

[Silberman]

I know the government will always come up with different conspiracy theories and policy to regulate cryptocurrency, which will not work out 100% because of the decentralized nature of most cryptocurrency like bitcoin, but some of the government's own centralized cryptocurrencies may get some form of regulation.

This is the plan but it is not working in the exact way that they want, it is obvious that politicians have realized that this market is not going anywhere so they want to release their own coins in order to deceive the population into adopting centralized cryptocurrencies, the issue is that they cannot really do this unless they regulate with a very high efficiency decentralized cryptocurrencies, if they are unable to do this then people are simply going to keep choosing bitcoin over any other alternative as they are going to have more freedom with it and they are not going to have the government spying on every single one of their transactions.