Why Governments Ban Cryptocurrency {Bitcoin}

[puloweh555]

I think there are more reasons why they are just banning bitcoins and want to disconnect themselves in any way shape or form regarding cryptocurrency. due to the fact that some people are still ignorant of it, their people might become prone to many Ponzi scheme scammers that are on the loose who used bitcoins as their props to fool people. it's important that they have some basic knowledge first and some preventive measures on how to protect themselves from such scammers and hackers as well, in order to save themselves from false investment platforms and other scenarios that lead them to lose all their savings. that's why some governments take countermeasures in order to protect their citizen but as soon as their people are aware of all of this they lift the ban and stay neutral about it.

I also hope that the reason the country bans bitcoin is purely because of the reasons you say. There is no other meaning.

But imo, This is mainly because the government cannot regulate and track it. The government wants to be able to investigate your bank activities if necessary, freeze assets, obtain taxes, etc. Since it was distributed, Bitcoin exists in many different locations at the same time. This makes it very difficult for one regulatory agency to impose its will across national borders. This also means that the government or other third parties technically cannot raid an office and shut anything down.

Apart from that, what makes them afraid of bitcoin, because bitcoin is a combination of finance, technology and utility along with an intellectual community and a socially open community. This leaves ancient ways of life behind and opens up many possibilities for a future as a global humanity without government interference.

[GbitG]

• Bitcoin and cryptocurrency are banned in most countries, China, Russia and many more.

I think it is impossible to ban bitcoin and cryptocurrency because they are decentralized, which is impossible to ban. Yes, we can call it a ban, not a restriction. The countries that have banned bitcoin do not mean a categorical ban; they mean restrictions. And in my opinion, Bitcoin can only be brought to the limit of restriction because it is a decentralized network, and it is impossible to fully control and ban it. As you said, Russia, China, etc. have banned Bitcoin. So they have not imposed a full ban but have restricted it. 10.1% of the whole population of Russia is still engaged in Bitcoin, but according to you, Russia has banned Bitcoin.

So what I mean is that Bitcoin is a decentralized pity under blockchain technology; no one can ban it, and those who have Bitcoin assets can share them with each other without third-party assets under a peer-to-peer network. Therefore, there is no fatwa of ban on it, but only to say that measures of restriction have been taken to prevent it.

Because the government is afraid of bitcoin

Obviously, there is no doubt that the government is afraid of Bitcoin because it is afraid of the two major problems facing the government due to Bitcoin. The first is that Bitcoin will end the government's fiat currency, which they do not want, and the second is that Bitcoin is used for money laundering, although the justification for money laundering is based on zero tolerance. This is not strong evidence of money laundering for not recognizing Bitcoin. Moreover, decentralized (Bitcoin) is thousands of times better than this government's actual currency.

So it means that it is the lame excuse of those who are not ready to adopt Bitcoin. But we cannot do anything because we are subordinate to them; the will of those who want to do it is the ruler. We can only advise him on Bitcoin adoption and nothing else. But there will definitely come a time when the government will recognize Bitcoin.

[coinremitter]

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.

It's true that many governments worldwide have expressed concerns about Bitcoin and other cryptocurrencies. The former European Central Bank President's skepticism and various other opinions reflect the complex relationship between governments and decentralized digital currencies.

Governments often ban or heavily regulate cryptocurrencies for several reasons. One key factor is the decentralized nature of Bitcoin. As a decentralized currency, it operates outside traditional financial systems, which makes it challenging for governments to control and monitor funds. This can raise concerns about financial security and tax evasion.

Additionally, as Bitcoin's adoption grows, it poses a potential challenge to governments' ability to maintain control over their national currencies. People worldwide are increasingly turning to Bitcoin as a form of currency and store of value, which can diminish the government's influence over monetary policy.

While it's true that cryptocurrencies like Bitcoin can be volatile, leading to concerns about their trustworthiness, they also offer several advantages. One of these advantages includes lower transaction costs. For instance, Coinremitter, a crypto payment gateway, offers a competitive 0.23% processing fee, making it a cost-effective solution for businesses and individuals.

Crypto payment gateways like https://coinremitter.com/?utm_source=rep&utm_medium=bitcointalks enable businesses to accept Bitcoin and other cryptocurrencies as payment, expanding their customer base and financial options. This innovative approach to payments can benefit both businesses and consumers while allowing governments to adapt to the changing financial landscape.

In conclusion, the debate around Bitcoin and other cryptocurrencies is multifaceted, with concerns about government control, trustworthiness, and volatility playing a role. It's essential to strike a balance between fostering innovation and addressing these concerns, and crypto payment gateways like Coinremitter are part of that evolving landscape, offering competitive fees and facilitating the broader adoption of cryptocurrencies.

[James C. Jackson]

Governments do not legitimize Cryptocurrencies because Governments have no control over Cryptocurrencies. So the government is always against it.

[Xampeuu]

I think there are more reasons why they are just banning bitcoins and want to disconnect themselves in any way shape or form regarding cryptocurrency. due to the fact that some people are still ignorant of it, their people might become prone to many Ponzi scheme scammers that are on the loose who used bitcoins as their props to fool people. it's important that they have some basic knowledge first and some preventive measures on how to protect themselves from such scammers and hackers as well, in order to save themselves from false investment platforms and other scenarios that lead them to lose all their savings. that's why some governments take countermeasures in order to protect their citizen but as soon as their people are aware of all of this they lift the ban and stay neutral about it.

I also hope that the reason the country bans bitcoin is purely because of the reasons you say. There is no other meaning.

But imo, This is mainly because the government cannot regulate and track it. The government wants to be able to investigate your bank activities if necessary, freeze assets, obtain taxes, etc. Since it was distributed, Bitcoin exists in many different locations at the same time. This makes it very difficult for one regulatory agency to impose its will across national borders. This also means that the government or other third parties technically cannot raid an office and shut anything down.

Apart from that, what makes them afraid of bitcoin, because bitcoin is a combination of finance, technology and utility along with an intellectual community and a socially open community. This leaves ancient ways of life behind and opens up many possibilities for a future as a global humanity without government interference.

It is normal that when there is a change there will be pros and cons, and of course this can actually be addressed well. Every development certainly has positive and negative values, so that there is no development that immediately achieves perfection, the same is the case with bitcoin, where there are several considerations that make it unacceptable, and of course this will be answered with time which requires technological changes, because conventional ones is no longer relevant

[BitcoinsGreat]

I think there are more reasons why they are just banning bitcoins and want to disconnect themselves in any way shape or form regarding cryptocurrency. due to the fact that some people are still ignorant of it, their people might become prone to many Ponzi scheme scammers that are on the loose who used bitcoins as their props to fool people. it's important that they have some basic knowledge first and some preventive measures on how to protect themselves from such scammers and hackers as well, in order to save themselves from false investment platforms and other scenarios that lead them to lose all their savings. that's why some governments take countermeasures in order to protect their citizen but as soon as their people are aware of all of this they lift the ban and stay neutral about it.

I also hope that the reason the country bans bitcoin is purely because of the reasons you say. There is no other meaning.

But imo, This is mainly because the government cannot regulate and track it. The government wants to be able to investigate your bank activities if necessary, freeze assets, obtain taxes, etc. Since it was distributed, Bitcoin exists in many different locations at the same time. This makes it very difficult for one regulatory agency to impose its will across national borders. This also means that the government or other third parties technically cannot raid an office and shut anything down.

Apart from that, what makes them afraid of bitcoin, because bitcoin is a combination of finance, technology and utility along with an intellectual community and a socially open community. This leaves ancient ways of life behind and opens up many possibilities for a future as a global humanity without government interference.

In simple words, the government wants to have control over the currency and they will not be willing to give a free hand to the public when they use bitcoins as a medium of exchange. The governments can print fiat money, so they are always in control and they are always rich because they get money out of thin air.

This is not possible when it comes to Bitcoin as no government or financial institute can print Bitcoin. Bitcoin supply is limited and that is one of the reasons why financial institutions oppose bitcoins as they need a flexible currency that they can print without keeping gold or anything in backup/reserve.

[tbct_mt2]

In simple words, the government wants to have control over the currency and they will not be willing to give a free hand to the public when they use bitcoins as a medium of exchange. The governments can print fiat money, so they are always in control and they are always rich because they get money out of thin air.

Governments can print fiat currencies, can mint their CBDCs and they want their citizens to use those fiat currencies, CBDCs as much as possible. Because with those currencies, they already have centralized systems to follow flows and can help their taxation governance better.

They don't want Bitcoin to become more popular, more easily to be accepted in their nations because they do know it's big threat for their currencies (fiat and CBDC).

This is not possible when it comes to Bitcoin as no government or financial institute can print Bitcoin. Bitcoin supply is limited and that is one of the reasons why financial institutions oppose bitcoins as they need a flexible currency that they can print without keeping gold or anything in backup/reserve.

Governments don't care about supply of Bitcoin but they are fearful that Bitcoin with its designs and use cases can get more people who change from cash, fiat currency, CBDC to use Bitcoin. It will make their bank systems weaker and result in more challenges for their taxation.

[Blitzboy]

I think there are more reasons why they are just banning bitcoins and want to disconnect themselves in any way shape or form regarding cryptocurrency. due to the fact that some people are still ignorant of it, their people might become prone to many Ponzi scheme scammers that are on the loose who used bitcoins as their props to fool people. it's important that they have some basic knowledge first and some preventive measures on how to protect themselves from such scammers and hackers as well, in order to save themselves from false investment platforms and other scenarios that lead them to lose all their savings. that's why some governments take countermeasures in order to protect their citizen but as soon as their people are aware of all of this they lift the ban and stay neutral about it.

I also hope that the reason the country bans bitcoin is purely because of the reasons you say. There is no other meaning.

But imo, This is mainly because the government cannot regulate and track it. The government wants to be able to investigate your bank activities if necessary, freeze assets, obtain taxes, etc. Since it was distributed, Bitcoin exists in many different locations at the same time. This makes it very difficult for one regulatory agency to impose its will across national borders. This also means that the government or other third parties technically cannot raid an office and shut anything down.

Apart from that, what makes them afraid of bitcoin, because bitcoin is a combination of finance, technology and utility along with an intellectual community and a socially open community. This leaves ancient ways of life behind and opens up many possibilities for a future as a global humanity without government interference.

Govts and Bitcoin. This is a typical fight between old and new, centralized and dispersed power. Governments have always set conditions, regulations, and taken their share of the pie. Bitcoin threatens this status quo by creating an unmanageable, untrackable system beyond their reach.

Its deeper than that. Bitcoin's intellectual and socially open community is a major social change. These communities want authority to be distributed democratically. The fabric of our civilizations is being rewritten, not simply finance. Bitcoin presents complex issues and has significant potential.

[retreat]

This topic has been discussed quite a lot and we here already know what the answer is because the government is afraid of Bitcoin. Bitcoin has various features that could disrupt the adoption of fiat for the wider community. They are concerned that more people will adopt Bitcoin and that makes Bitcoin the best alternative to banking that provides affordable, equitable and decentralized financial services for society. Therefore, they inhibit the adoption of Bitcoin and as far as possible do not allow their people to use it as a means of payment to replace the role of fiat and banking.

[CoinFoxs]

There are many reason of banning bitcoin, the first reason governments are afraid of bitcoin’s importance, if bitcoin is legal the people start buying bitcoins in their country and ultimately the devaluation of their own currency starts. The other reason is smuggling government of different countries thinks people do smuggling through payments in bitcoin.

[danadc]

It's easy sometimes things are not as expected because governments are not direct participants in Bitcoin, but I believe and know that many of the municipal governments have bitcoin in hodl mode, and they continue to actively buy, because they know that the bticoin is going to go up, and if it goes up they will still win, but for people they say that they are against it because they do not trust that class of assets, they say that it is dangerous and that they do not Recommend it, but if they buy , then they take advantage and charge the taxes on the people who use it , and they use the regulations to maintain their Positions Before their people , the truth is a Dirty play.

[uchegod-21]

The government likes control.  When they cannot regulate or control it, they ban it. The decentralized nature of some cryptocurrencies like bitcoin has prevented the government from tracking the activities of the people. If the government allows the usage of Bitcoin,  government revenue will be affected because it will be difficult for the government to ascertain the percentage of tax to be imposed on the citizens. And we know that citizens will prefer to go for an option that will save costs. The value of fiat too will reduce.  This they know, hence the decision to ban bitcoin.

The government also want to be in control in terms of welfare and safety of its citizens.  We have heard of cases where people are kidnapped and a ransom is demanded before the victims can be released or cases of fraudulent practices. Most of this culprits were tracked down from the bank transactions they did. It will be difficult for a culprit doing business with crypto to be tracked and punished accordingly.
The list goes on and on. Cryptocurrency is a threat to the government.

[GeorgeJohn]

You can said bitcoin is been banned in some of the countries you listed but people living in those countries are making use of bitcoin, so if people living in same country where government announced that bitcoin has be ban is still using bitcoin what can you think about that?

That is to say that government of that particular nation deprived people their choice of monetary transactions and other kind of living, so therefore government of those nations just restricted the banks from bitcoin, because bitcoin  cannot be ban by a particular nation because bitcoin is not centralized currency, it's when bitcoin is centralized when a particular government can have access to sealed a centralized environment where bitcoin been transact.

But it a decentralized currency in which it's obvious that you can't ban bitcoin but you can regulate it and also restrict bitcoin in your country through the country world ban..I could remember vividly when bitcoin was not been restricted in my country, exchange of bitcoin do take place directly from the bank because as of that time bitcoin is been trade directly in my country central bank, but right now we are making use of p2p since it has been restricted.

[BITCOIN4X]

This topic has been discussed quite a lot and we here already know what the answer is because the government is afraid of Bitcoin. Bitcoin has various features that could disrupt the adoption of fiat for the wider community. They are concerned that more people will adopt Bitcoin and that makes Bitcoin the best alternative to banking that provides affordable, equitable and decentralized financial services for society. Therefore, they inhibit the adoption of Bitcoin and as far as possible do not allow their people to use it as a means of payment to replace the role of fiat and banking.

I don't think everyone needs government approval to use bitcoin as a means of payment, but of course it can't be done openly. As long as transactions can be carried out anonymously between two users using bitcoin, then you can always use bitcoin as a means of payment even if your government does not legalize bitcoin as a means of payment.

The government is certainly afraid of the impact of bitcoin adoption on the superiority of its centralized financial system, which is understandable. Many people would abandon the centralized financial system if the government had adopted bitcoin as legal tender, especially for everyone who understands bitcoin and its innovations.

[Alpha Marine]

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.

I don't believe governments are dumb, they know exactly what they're doing. The government knows more about stuff than you. Most of us believe they don't understand Bitcoin but I don't agree with that. They know that Bitcoin stands against their core power: control.
It's very easy to control people if you control their financial lives.
The government wants to be in control of everything.

If Bitcoin was a coin made and controlled by the government they'll be accepted as legal tender by now. This is evident in the fact that they created their own CBDC. If they were totally against crypto there would be no need to create their own digital coin.

They say Bitcoin increases internet fraud and scams, these are all the excuses they use to justify their actions. Why didn't they ban the internet, why didn't ban phones and computers?

[terrific]

Governments do not legitimize Cryptocurrencies because Governments have no control over Cryptocurrencies. So the government is always against it.

Not all in general for the governments. But that's one reason why they don't want to legalize it at least for those that don't really like it.
But there are countries and its governments agrees to just let it pass and let their citizens don't have any trouble in using and investing on it.
They don't want to block the progress of the thriving Bitcoin market to their country because they have got citizens that are into it and that's the type of the government that we all wanna have.

[carlfebz2]

I think there are more reasons why they are just banning bitcoins and want to disconnect themselves in any way shape or form regarding cryptocurrency. due to the fact that some people are still ignorant of it, their people might become prone to many Ponzi scheme scammers that are on the loose who used bitcoins as their props to fool people. it's important that they have some basic knowledge first and some preventive measures on how to protect themselves from such scammers and hackers as well, in order to save themselves from false investment platforms and other scenarios that lead them to lose all their savings. that's why some governments take countermeasures in order to protect their citizen but as soon as their people are aware of all of this they lift the ban and stay neutral about it.

I also hope that the reason the country bans bitcoin is purely because of the reasons you say. There is no other meaning.

But imo, This is mainly because the government cannot regulate and track it. The government wants to be able to investigate your bank activities if necessary, freeze assets, obtain taxes, etc. Since it was distributed, Bitcoin exists in many different locations at the same time. This makes it very difficult for one regulatory agency to impose its will across national borders. This also means that the government or other third parties technically cannot raid an office and shut anything down.

Apart from that, what makes them afraid of bitcoin, because bitcoin is a combination of finance, technology and utility along with an intellectual community and a socially open community. This leaves ancient ways of life behind and opens up many possibilities for a future as a global humanity without government interference.

Govts and Bitcoin. This is a typical fight between old and new, centralized and dispersed power. Governments have always set conditions, regulations, and taken their share of the pie. Bitcoin threatens this status quo by creating an unmanageable, untrackable system beyond their reach.

Its deeper than that. Bitcoin's intellectual and socially open community is a major social change. These communities want authority to be distributed democratically. The fabric of our civilizations is being rewritten, not simply finance. Bitcoin presents complex issues and has significant potential.

And that what makes it really that invincible or something that government couldn't really be able to touch up completely nor really that be able to control and thats the main beauty of it and this is why it did really get that much attention and support here in the community. We do really know that it wont really be that something that could be fully controlled by the government and everything that opposes governments preference would really be that something that their main concern and needs to be deal out.This is why they would really be focusing on touching up crypto space via with those centralized applications on which they would really be able to touch up themselves in speaking to this.

There might be some places on this world which recognized Bitcoins existence but most of them would really be totally going against with it which its not really that shocking.
Good thing that despite of those restrictions and even banning, the community stood strong and do really be able to see that there's really that a huge support
and recognition on which it is really that something that they would really be that really be against with.We know that anonymity and decentralized things isnt a government thing.

[coupable]

Why Governments Ban Cryptocurrency {Bitcoin}

I have a comment associated with the title ; I think that using the word “Ban” is not appropriate, terminologically or linguistically, because no one can do that theoretically or practically. Bitcoin has decentralized characteristics that do not allow any central authority to make a decision about it. It is not an application stored on a server or a company that can be disagreed with or asked to stop its activities in a certain area. Governments are well aware of this, and therefore they can impose sanctions on anyone proven to use Bitcoin for exchanges, but they cannot completely prevent him from using it, and it also makes it difficult for them to monitor him if he uses his own wallet.

[Sophokles]

Why Governments Ban Cryptocurrency {Bitcoin}

I have a comment associated with the title ; I think that using the word “Ban” is not appropriate, terminologically or linguistically, because no one can do that theoretically or practically. Bitcoin has decentralized characteristics that do not allow any central authority to make a decision about it. It is not an application stored on a server or a company that can be disagreed with or asked to stop its activities in a certain area. Governments are well aware of this, and therefore they can impose sanctions on anyone proven to use Bitcoin for exchanges, but they cannot completely prevent him from using it, and it also makes it difficult for them to monitor him if he uses his own wallet.

Bitcoin's decentralized nature doesn't prevent it from evading bans. A government can force people not to use bitcoin and they can discourage people by implementing criminal charges against its users. Despite these some people will use it but most of them will turn away from it. No one wants to go to jail by any means. The government doesn't need to be 100% successful to force their people not to use bitcoin to be successful. If most of the people stop using it out of fear of imprisonment that will be enough for them.

[benalexis12]

The government can do whatever they want to do, especially with businesses, whether they approve it or not, as long as they benefit from it. Of course, they will prioritize their personal interests over the benefit of the government.

And any government will not really agree if they have no benefit to gain from it. Especially since they own it. But this kind of behavior by the government is normal, so many countries have banned Bitcoin, and eventually they also revoked it because they realized that it has benefits for their country.