Why Governments Ban Cryptocurrency {Bitcoin}

[Miles2006]

Former European central bank President once said bitcoin is not real, he also said he is against bitcoin, so many people saying there own opinion towards bitcoin. But have you ever thought why?, from my own point of view

• Bitcoin and cryptocurrency are banned in most countries, China, Russia and many more. Because the government is afraid of bitcoin
• knowing that bitcoin is a decentralize currency, the government cannot control and monitor your funds.
• As bitcoin continues to grow most people continue to adopt bitcoin as there currency, the increase population of bitcoin has become global, business owners, traders, now use bitcoin so the government is scared of loosing there value of money. The more people use bitcoin in saving there money the more the government loose control of there currency.
• they see bitcoin and other cryptocurrency as not trustworthy, as the value changes.

   

Conclusion:

Countries ban bitcoin for different reasons, some, the government (president) didn't even know anything about crypto but the financial advisers gave the wrong information or they advise the government wrongly on cryptocurrency.
If the financial advisers gave the right information on cryptocurrency many countries would have adopted bitcoin in their countries. Some of them were trying to prevent their citizens from internet fraudstars and scammers probably because of the previous experienced in the country.

[romero121]

Bitcoin vs the government
Why is cryptocurrency illegal in some countries?
Government vs Bitcoin
Bitcoin can be banned or stopped by governments
If you were the government, how would you fight against bitcoin?

Above are few threads that discussed much about the governments, their plans, and why they want bitcoin to be banned. Rather than discussing again on the similar topic it is good to discuss in the opposite way, what benefits bitcoin can bring to a country when adopted as legal tender as we don't have countries other than El Salvador.

[Fivestar4everMVP]

Just as you have mentioned or said rather, the countries that banned bitcoin did so for several reasons, but for me, what I have always believed is that, the government will always hate what they cant conquer, and try to destroy that which they do not understand that seem like a threat to them and their centralized financial system.

But its still very unfortunate that they ban bitcoin simply out of lack of understanding, bitcoin to me is the most friendly currency in the entire world, it does not discriminate, and neither does it have a selection of where it will work and where it wont, Bitcoin is ready to cooperate and work hand in hand with fiat to provide for the people, the kind of financial system they need, if only the government will come down from their high hills and understand that the solution to the fiat problem they have been tryin to solve for years now is Bitcoin.

All they have to do is, allow those who want to transact in bitcoin to do so peaceful, as they also allow those who choose fiat to also do so peaceful, they can not force every one of us to go the fiat way with them when we have a better alternative like Bitcoin around.

[Despairo]

• Bitcoin and cryptocurrency are banned in most countries, China, Russia and many more. Because the government is afraid of bitcoin

Even though China is ban Bitcoin, but Sanghai e.g. one of city in China is recognize Bitcoin now [1], so the citizen can come to visit this country if they want to buy Bitcoin.

Russia isn't ban Bitcoin, they only forbid banks are associated with Bitcoin [2], so it's not a problem if you trade via P2P without link to bank.

[1] https://bitcointalk.org/index.php?topic=5468382.0
[2] https://en.wikipedia.org/wiki/Legality_of_cryptocurrency_by_country_or_territory#Russia

[aylabadia05]

It's not real because they can't physically hold Bitcoin like they can hold coins or banknotes that are printed in large quantities every year by the state. Opposition to Bitcoin is because he cannot get a share like the share that is obtained from the amount of currency owned by the state.

The ban and opposition to Bitcoin by countries and other organizations is nothing new that has shocked the Bitcoin-loving community, despite the various reasons given by countries or governments that oppose Bitcoin. Bitcoin continues to circulate amidst the strong opposition carried out by them because Bitcoin will not die because of their ban on clowns.

[PX-Z]

For obvious reason, cryptocurrency is the opposite of how government wants to fiat, it's a matter of how they can control it which is they can't over crypto. For those countries who accepts bitcoin (crypto-friendly) are those government who understand y really well and used it for their advantage.

[kingvirtus09]

If there is a country that has banned Bitcoin, it's simply because they haven't researched the good that Bitcoin can do in their country. Because they always think that they have nothing to gain from it, but the truth is that they can gain a lot from Bitcoin.

That's why the other countries that previously banned Bitcoin also withdrew it, right, like El Salvador, Russia and others. Why? because they realized in the end that it would be a great contribution to their country and even to their constituents and also establishment businesses to be honest.

[yhiaali3]

This is wrong, basically in most countries decisions and regulatory laws are made by the government and not the president, but regardless even countries with a president will get the same result because the government and the president love centralization and control and hate decentralization.

Bitcoin has unique characteristics that make all governments ban it, such as decentralization and privacy. This makes citizens’ financial transactions far from the eyes and hands of the government, so it is rare to find a government that accepts Bitcoin.

The only exception is perhaps El Salvador because of the major economic problems that the country suffers from and the lack of a national currency in the first place, which prompted the open-minded president to adopt Bitcoin.

[Aanuoluwatofunmi]

From your topic, a little correction to be made is that governments go against other cryptocurrencies and are getting to recognize bitcoin as the only digital currency that is valid and acceptable, dome governments are already making this known to the public, which also means that they have realized that bitcoin is not the problem but a number of altcoins in which a large number of them were shitcoins, part of the reasons we are having scam in cryptocurrency, bitcoin is not the problem and they are getting this straight already unlike before when it was all been made hard on bitcoiners.

[Kakmakr]

Why would you allow a technology that gives governments less control and more freedom to people? The governments that are banning Crypto currencies like Bitcoin are control freaks and they monitor and control their citizens.

Bitcoin gives people financial freedom.... Example : Citizens can donate to Wikileaks and sites like this are used to hold governments and large corporations accountable to it's citizens. (Governments hate that, because they cannot block those payments)  

[tbct_mt2]

Simple.

They want to defend their fiat currencies and in future their CBDCs.
They try to reduce access of their citizens to Bitcoin and cryptocurrencies as much as possible because they see those currencies as threats for their fiat and CBDCs.

Some reports to help you have some insights
Cryptocurrency regulations around world
PwC Global crypto regulation report 2023

[lombok]

This is wrong, basically in most countries decisions and regulatory laws are made by the government and not the president, but regardless even countries with a president will get the same result because the government and the president love centralization and control and hate decentralization.

Bitcoin has unique characteristics that make all governments ban it, such as decentralization and privacy. This makes citizens’ financial transactions far from the eyes and hands of the government, so it is rare to find a government that accepts Bitcoin.

The only exception is perhaps El Salvador because of the major economic problems that the country suffers from and the lack of a national currency in the first place, which prompted the open-minded president to adopt Bitcoin.

Actually bitcoin is not very private, because everyone can see transactions on the blockchain as well as wallet addresses.
Responding to OP

There are several main reasons why Bitcoin is not legalized in that country, namely because if Bitcoin is legalized as a means of payment or transaction, the value of that country's currency could be disrupted. If Bitcoin is legalized as a means of payment, many export and import sectors will use Bitcoin and the country's currency will decrease in value because its performance decreases. A currency gets stronger if it continues to be used/circulated to revive the economy. If this does not happen then the currency will not move and demand for the currency will also decrease resulting in excess supply while there is no demand.

Please correct me if I'm wrong.

[Faisal2202]

• Bitcoin and cryptocurrency are banned in most countries, China, Russia and many more. Because the government is afraid of bitcoin

You are right but to some extent only, because those who have accepted btc or not banned it yet, they also can not control the BTC because BTC is also decentralized for them. All they are doing is getting benefit from the new technology and earning money. For example. BTC is banned in our country why?.

Pakistan's Minister of State for Finance and Revenue has reportedly said crypto cannot be legalized in the nation due to conditions set by the global money laundering watchdog for staying off of its list of countries under increased monitoring.

source
While this issue is also faced by those countries who have accepted or not banned BTC yet. Instead of banning BTC they try to find ways that could avoid or stop the bad use of decentralization factor of btc-->Money laundering

To be honest, this is the shitiest accuse I have heard. Well what we can do. Nothing.

Governments can find out who is using btc and can tax them and earn money from the crypto (btc) users. So we should not say that every btc users can not be observed by governments. The thing is those who have banned btc, they don't want to spend time in another sector of investigating such cases involved in btc so at the simplest scenario they banned it. [/list]

[bittraffic]

No government will give up without a fight against the decentralization. They will always want control, that's what government do otherwise its chaos. But still BTC survives because people know that it a hedge against the inflation and authorities has no dominion over BTC.

Government claiming they are just protecting their citizen from scams is fair. No denying there are lots of crypto scam as well. But BTC will be preferred by the people for its for the people and not owned by authorities.

[KiaKia]

So far, they are all losing, and if things keep going like this, governments around the world will have to become friendly with Bitcoin sooner or later, with the way things are looking right now, I think for the first time in history, Bitcoin will defeat them all, and bring them closer too.

They have no choice for real, if you can't beat you join them, this is what will happen in the end, if not why is ETF now a thing? Exactly, Bitcoin is the solution to the problem of many countries, they lack wisdom that's why they are still banning it, the few smart ones are going after Bitcoin as their rescuer now, so I am not surprised. 

So there you have it, the ban is happening because the government lacks the wisdom and only focuses on power, they are looking at the disadvantage and that's decentralization, they fail to look at the advantage side of Bitcoin, but it's only a matter of time.

[Twentyonepaylots]

Just as you have mentioned or said rather, the countries that banned bitcoin did so for several reasons, but for me, what I have always believed is that, the government will always hate what they cant conquer, and try to destroy that which they do not understand that seem like a threat to them and their centralized financial system.

Governments or Countries does not hate Bitcoin, in fact they are very open with it, but it gets problematic to fully adopt this cryptocurrency because it gives so much financial freedom to its user that defeats the purpose of the government. Bitcoin or cryptocurrencies in general does not have a governing body, its government is its people so it get less interest from the government and they don't want it to just throw them away and be taken over.

All they have to do is, allow those who want to transact in bitcoin to do so peaceful, as they also allow those who choose fiat to also do so peaceful, they can not force every one of us to go the fiat way with them when we have a better alternative like Bitcoin around.

The principle is basic, cryptocurrencies are nothing without fiat, that's the very problem with it, government making the fiat currency and being injected to cryptocurrencies is more of bypassing the banking institutions they have build in a century.

[mindrust]

The governments want more control over people. Bitcoin takes this ability and gives it back to people. When people use bitcoin, they are semi anonymous as long as they don’t use any centralized exchanges. Privacy is the enemy of the governments. It is a basic human right but the govs don’t see it that way. They want to know everything about you. What you watch, what you buy, what you eat… Bitcoin is driving them crazy. For this reason, the govs don’t like bitcoin one bit. Right now some govs don’t ban it because they think they can control it but we know that it is impossible. Sooner or later though bitcoin will have fight these assholes. Hopefully later.

[adzino]

Former European central bank President once said bitcoin is not real, he also said he is against bitcoin, so many people saying there own opinion towards bitcoin. But have you ever thought why?, from my own point of view

• Bitcoin and cryptocurrency are banned in most countries, China, Russia and many more. Because the government is afraid of bitcoin
• knowing that bitcoin is a decentralize currency, the government cannot control and monitor your funds.
• As bitcoin continues to grow most people continue to adopt bitcoin as there currency, the increase population of bitcoin has become global, business owners, traders, now use bitcoin so the government is scared of loosing there value of money. The more people use bitcoin in saving there money the more the government loose control of there currency.
• they see bitcoin and other cryptocurrency as not trustworthy, as the value changes.

   

Conclusion:

Countries ban bitcoin for different reasons, some, the government (president) didn't even know anything about crypto but the financial advisers gave the wrong information or they advise the government wrongly on cryptocurrency.
If the financial advisers gave the right information on cryptocurrency many countries would have adopted bitcoin in their countries. Some of them were trying to prevent their citizens from internet fraudstars and scammers probably because of the previous experienced in the country.

1. Bitcoin isn't banned in "most" countries like you think. China and Russia isn't the "whole" world.

2. They are already doing it through different laws and by forcing crypto financial services to do KYC on their customers.

3. Not true. Most people are still using fiat currency. Even those "business" that accept bitcoin, later ends up converting their coin to fiat currency. They need to pay the bills too after all.

4. Not trustworthy because the value changes? Are the price of precious metals stable? Nope. And the government trusts them too.

Few governments that placed a ban on using crypto currencies is because they don't know how crypto currencies work. They don't have proper framework. People might be able to abuse this and launder money at will and ease.

[SamReomo]

Can you tell me why someone hate something? The answer is that thing is harmful for them and can cause them trouble. That's a single human hatred the governments are not controlled by a single person but a group of people with same mindset. The governments main motive is to have complete control over the citizens and something like Bitcoin won't allow them to control the citizens in way they wanted to. That's why the governments are trying to add competitor to Bitcoin in the form of CBDCs.

The CBDCs are digital like Bitcoin but they are 100% centralized and governments can control those. No-one can control Bitcoin because it's decentralized and is supported by a huge community of miners and nodes. The public controls Bitcoin the governments doesn't, not even the creator of Bitcoin has control over it. If the governments can't control Bitcoin then in similar way they can't control the ones who use Bitcoin, but surely they can't hide their negative intentions and that's why they are banning Bitcoin.

I'm not against governments but that a reality which we will have to accept. The Bitcoin is really a huge threat to governments and they try to do everything to suppress its growth. The launching of CBDCs is the first step that they took against Bitcoin and surely in future they will make more plans to stop the growth of Bitcoin. But, I highly believe that they will not be successful because Bitcoin is supported by the humans of the whole world not from a single particular region.

[BitcoinPanther]

• Bitcoin and cryptocurrency are banned in most countries, China, Russia and many more. Because the government is afraid of bitcoin

Government are not afraid of Bitcoin, the main reason other countries are banning cryptocurrency because they don't have control over the cyrptocurrency system and the government does not want to let decentralized project to take over their financial system.  Aside from that, many scam companies make use of crypto to scam their investors and the government saw it and wanted to prevent it from happening by banning cryptocurrency

• knowing that bitcoin is a decentralize currency, the government cannot control and monitor your funds.

Bitcoin blockchain is transparent, if you happen to accidentally link your identity to a certain address, then your cryptocurrency holdings  can easily monitored and the government are making way to control peoples fund and that is through the report of the exchanges to the government.