Why are some government scared of Bitcoin?

[jokers10]

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They fear it might cause unaccountability in the economy since they would not know the financial inflow and outflow, and believe it would aid illegal money flows, which is true as a result of its anonymity in most cases.

Cash is mostly anonymous. Following your reasoning do I need to suppose that you use it for some illegal issues as it is theoretically possible? It is so wrong to suppose that majority is criminal. We know that Illicit financial flows are still mainly of fiat currencies and criminals perfectly know how to operate with fiat currencies. When we see statistics it usually says that Bitcoin is rarely used for criminal purposes. So all reflections about Bitcoin and criminals are just assumptions, you need to prove it and not just to spread FUD.

[1715357184]

1715357184

[kzkazu]

Governments are afraid of Bitcoin because of control issues, any government wants to have absolute control over their citizens, they always want to exercise power to manage money. But Bitcoin is decentralized, and they cannot control and manage Bitcoin assets.
Price volatility is also a problem and challenge that is difficult to solve. The price of Bitcoin is unstable, and when the price falls, it can easily affect the development of the country's economy.

[slaman29]

Cash is mostly anonymous.

Not any longer, especially with digital cash. I don't remember the last time I used real cash except for roadside stalls or big night markets, which all accept qr code payments now already.

Everything you spend from your bank account, your card, your phone, that's all properly and exactly tied to you

Though you're right that people want to assume if you want to hide from the government, you have done something wrong. The government makes people think like this though.

[jokers10]

Cash is mostly anonymous.

Not any longer, especially with digital cash. I don't remember the last time I used real cash except for roadside stalls or big night markets, which all accept qr code payments now already.

Everything you spend from your bank account, your card, your phone, that's all properly and exactly tied to you

Though you're right that people want to assume if you want to hide from the government, you have done something wrong. The government makes people think like this though.

What is even more traced than classical digital forms of fiat is forthcoming CBDC: to learn your nowadays transactions governments at least need to connect an intermediary commercial banks, CBDC gives them all data directly... And then we know that governments don't keep data safe enough, all that data will be known by major crime in some time. So right, when I prefer to stay anonymous it is not because I don't want to stay honest, it is because I prefer to stay as safe as reasonably possible.

[Alpha Marine]

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They fear it might cause unaccountability in the economy since they would not know the financial inflow and outflow, and believe it would aid illegal money flows, which is true as a result of its anonymity in most cases.

Cash is mostly anonymous. Following your reasoning do I need to suppose that you use it for some illegal issues as it is theoretically possible? It is so wrong to suppose that majority is criminal. We know that Illicit financial flows are still mainly of fiat currencies and criminals perfectly know how to operate with fiat currencies. When we see statistics it usually says that Bitcoin is rarely used for criminal purposes. So all reflections about Bitcoin and criminals are just assumptions, you need to prove it and not just to spread FUD.

I think he's just giving a reason why governments fear Bitcoin , he's not justifying it. But I believe the major reason they are against Bitcoin is because they can't control it. The government do not like what they cannot control.

Every other thing they say is an excuse.
The internet is used for all sort of illegal activities, does that mean the internet should be banned? Basically almost all of man's invention can be used for good as well as bad.

[imamusma]

What is even more traced than classical digital forms of fiat is forthcoming CBDC: to learn your nowadays transactions governments at least need to connect an intermediary commercial banks, CBDC gives them all data directly... And then we know that governments don't keep data safe enough, all that data will be known by major crime in some time. So right, when I prefer to stay anonymous it is not because I don't want to stay honest, it is because I prefer to stay as safe as reasonably possible.

Of course, the CBDC is a fully centralized asset or currency under the auspices of the government. It is highly unlikely to expect the CBDC to be a currency that can protect us from financial privacy, it is a government currency that should be ignored when we want to maintain good financial privacy.

When you like to remain anonymous, then bitcoin must be the best solution for you. Bitcoin is more than just a currency and a means of payment, bitcoin is also a store of value and an investment asset so people's interest in owning it will remain high even if the government issues a CBDC.

[GigaBit]

There will  be always various discussions, criticisms or controversies about Bitcoin or cryptocurrency. But the truth is that people in the modern world are now very enthusiast on digital currencies. They want to accept digital currency instead of fiat. And by realizing these things, people of different countries as well as different political personalities want to take the decision to accept crypto as legal tender. A number of countries are currently in the process of approval. We know El Salvador has already given its permission. But recognizing the risks, international Monetary Fund (IMF) are still encouraging bitcoin to back away from being declared legal tender. They feel that cryptocurrency or Bitcoin is more volatile so their liability may increase anytime if the price drops.

[slaman29]

Though you're right that people want to assume if you want to hide from the government, you have done something wrong. The government makes people think like this though.

What is even more traced than classical digital forms of fiat is forthcoming CBDC: to learn your nowadays transactions governments at least need to connect an intermediary commercial banks, CBDC gives them all data directly... And then we know that governments don't keep data safe enough, all that data will be known by major crime in some time. So right, when I prefer to stay anonymous it is not because I don't want to stay honest, it is because I prefer to stay as safe as reasonably possible.

That's what I mean, there's no such thing as anonymous cash and it's not getting better, it's getting worse. Even with paper money in the past, it was already laced with ways to trace you but now with CBDC it is a whole new level of reducing privacy, and the kick in the stomach for some of these CBDC is that it is using blockchain technology to do this. Direct data, accurate data, and because it is private, has not the same PoW benefit of Bitcoin (another reason governments hate Bitcoin).

[eddie.gouws]

Bitcoin is a decentralized currency that doesn't rely on trusting any particular government or financial institution. This makes Bitcoin a threat to governments and financial institutions that rely on controlling the flow of money within their countries/jurisdictions.

Governments may also be scared of Bitcoin because it allows for anonymous transactions, which could be used for illegal activities such as drugs or arms trafficking.

My thought is if it is illegal, it should be regulated now that begs the question if it gets regulated in an ideal way, will that make it crush due to its full legal and law-abiding nature?

[sstephan]

no government is scared of bitcoin .

one of government roles is to protect its citizens .
if in a specific country there is large percentage of stupid population , they need tighter control  
it doesn't matter if its drugs , alcohol or bitcoin .
if the government believes those dummies that invest in imaginary internet money will find themselves on the street one day , and become a burden on society then they need to control it .

my country did not ban bitcoin , but casinos and gambling is banned .
casino can make lots of money in taxes for the government . but i guess we have large percentage of stupid population that can burn all their money in gambling and become a burden on the rest of the normal population.

government control is not always bad .

 

[jokers10]

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government control is not always bad .

But it has no boundaries: knives can be dangerous for "stupid population", medications can be dangerous, wearing incorrect clothing... and as a result we'll get an anti utopian world. Government consists of the same people who can make mistakes which can be dangerous and even much more dangerous than a mistake of someone outside, but we don't ban governments because they have a positive meaning also.

Don't absolutize governments, their decisions and fears can be as wrong as of someone else of "stupid population".

[Derrickiell]

Bitcoin is a decentralized currency that does not depend on the government and poses a certain threat to government power. Banks and governments have no control over Bitcoin, no more control over people's money.
Bitcoin’s anonymous letters also have governments fearing it could be used for illicit activities and help increase crime. This is why governments don't like Bitcoin.

[Inwestour]

But it has no boundaries: knives can be dangerous for "stupid population", medications can be dangerous, wearing incorrect clothing... and as a result we'll get an anti utopian world. Government consists of the same people who can make mistakes which can be dangerous and even much more dangerous than a mistake of someone outside, but we don't ban governments because they have a positive meaning also.

Don't absolutize governments, their decisions and fears can be as wrong as of someone else of "stupid population".

The problem with the government is that they are trying to control all aspects of the life of the population of the country. They want to monitor our every purchase, every payment, that everything is available to them, that every dollar is taxed. But no one likes to live under surveillance, if a law-abiding person works and pays taxes, then he does not need such control. Governments are not perfect, you are right, they are made up of people who can make mistakes.

[taufik123]

-snip-
Bitcoin’s anonymous letters also have governments fearing it could be used for illicit activities and help increase crime. This is why governments don't like Bitcoin.

This is the downside that bitcoin will be decentralized so anonymous will be free to make any transactions. But that's not entirely going to happen, transactions in bitcoin can be tracked by the government because transactions are recorded in the blockchain ledger and cannot be deleted. Although there is a Mixer platform that allows transactions to be hidden, in the end, large transactions can be tracked.

The problem with the government is that they are trying to control all aspects of the life of the population of the country. They want to monitor our every purchase, every payment, that everything is available to them, that every dollar is taxed. But no one likes to live under surveillance, if a law-abiding person works and pays taxes, then he does not need such control. Governments are not perfect, you are right, they are made up of people who can make mistakes.

Governments have full authority when they regulate Fiat, society must abide by those rules. When the government has no control this will endanger them. Currently, even the government provides clear rules regarding taxes on bitcoin or cryptocurrency and these steps are taken to be able to generate income from transactions made in crypto and supervise those who use crypto through a Centralized Exchange.

The government provides rules so that crypto can run well, some government regulations are not always bad because some are governments that support crypto and some shun it.

[jokers10]

The problem with the government is that they are trying to control all aspects of the life of the population of the country. They want to monitor our every purchase, every payment, that everything is available to them, that every dollar is taxed. But no one likes to live under surveillance, if a law-abiding person works and pays taxes, then he does not need such control. Governments are not perfect, you are right, they are made up of people who can make mistakes.

It is natural for governments to want to get as much control as only possible, and they will try to get it any time. So civil society should resist these intentions where control starts to seem unjustified.The balance of a government and a civil society makes everything in the country works well.

Bitcoin is an answer from the civil society to governments intentions to over control financial flows including money in private purses. We want to keep control over our money.

[jokers10]

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Because they can't catch people using cryptocurrencies for criminal purposes
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Why? What's wrong with law enforcement agencies in those countries? Any criminal activity can't be locked inside blockchain, it always has lots of outer actions. Moreover, Bitcoin's blockchain is transparent so you can trace different criminal transactions once you found connections with a criminal activity. And we can learn from media that police of different countries often uses that option. And we know that some criminals used traditional bank systems for tens of years (and some for sure still do it), so it is not preventing crime activities.