Why Governments Ban Cryptocurrency {Bitcoin}

[BitDane]

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.

If this is the reason, government should have banned fiat currency because there are more events where people got scammed in this form of currency.  I don't think it is about protecting their people.  I believe it is about the control and the implication it will cause to their economy  and profit.

I believe the government is more knowledgeable than the average Joe when it comes to Bitcoin knowledge but they can't just simply approve it to co-exist with their national currency because of certain grounds.  The high volatility and the unable to control the source of the cryptocurrency.  We all know that the government hates anything they can't control and often tag them illegal.

[TimeTeller]

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.

The very main reason why I believe some countries have negative approach towards bitcoin is that this market is decentralized.
So the government has no hold or no control on this currency and that they don't want to deal with such uncertain market.
Also, the point that most of these officials up until now are not really educated to this market, hence, their hesitation to include this in their financial plans.
So I guess, learning this market will give them more insights and be more open mind as this market will continue whether they will participate or not.

[Obari]

There are several reasons why government would want to ban bitcoin or already banned bitcoin and these reasons differ from country to country and maybe I will have to speak for my country and one of the major reasons why the government has decided not to identify with bitcoin is because of the risk of its citizens getting scammed by those online hoodlums who always get people scammed through bitcoin and this singular act of scam has already painted so much wrong image of bitcoin already and the government has already warned all banks and the cbn from getting involved in any cryptocurrency transaction.
And another reason is the fact that bitcoin is decentralized and if accepted, will be very difficult for the government to country or have dominance or its citizens hence they’re doing really hard to fight and I think they already have wrong advisers around them .

[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.

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.

I don't see that we differ in opinion much. These legislations that prevent use actually exist, but what is missing is how it will be possible to track these activities if they are not linked to central platforms or in a direct relationship with any commercial activities, for example. People will be afraid of going to prison or paying for their sins, and some will give up on the whole matter and some will look for alternative plans. Without connecting to any central service, whether company or platform, there is nothing to be afraid of.

[cheezcarls]

Control is one thing that the government wants from us. They can't control Bitcoin and no way they can access its utmost core.

This is why some countries are outright banning and outlawing BTC and cryptocurrencies. Like they're declaring them as illegal and any citizen who is involved may get punished for doing so. But this won't stop them from keep doing BTC transactions even on the underground like using VPNs, etc.

But some countries like El Salvador are accepting it as open arms and is already making BTC as legal tender.

There are also countries like the Philippines where they are crypto-friendly but on a grayish area where the Central Bank is just acknowledging and regulating BTC and other cryptocurrencies.  

[Blitzboy]

There are several reasons why government would want to ban bitcoin or already banned bitcoin and these reasons differ from country to country and maybe I will have to speak for my country and one of the major reasons why the government has decided not to identify with bitcoin is because of the risk of its citizens getting scammed by those online hoodlums who always get people scammed through bitcoin and this singular act of scam has already painted so much wrong image of bitcoin already and the government has already warned all banks and the cbn from getting involved in any cryptocurrency transaction.
And another reason is the fact that bitcoin is decentralized and if accepted, will be very difficult for the government to country or have dominance or its citizens hence they’re doing really hard to fight and I think they already have wrong advisers around them .

Your concern about governments banning bitcoin to protect citizens from scams is real. The criminal element has tarnished bitcoin's image in the eyes of many governments and their citizenry. Please be honest. Scammers will take any opportunity to profit, but should they obstruct technical advancement? I doubt it.

Bitcoin's decentralization does strip governments of some authority, but isnt that its essence? Bitcoin was created to empower individuals without intermediaries. Some governments may see this as a threat to their power. One needs to wonder if governments are actually serving their citizens' best interests or merely resistive to change and afraid of losing control.

[DanWalker]

There are several reasons why government would want to ban bitcoin or already banned bitcoin and these reasons differ from country to country and maybe I will have to speak for my country and one of the major reasons why the government has decided not to identify with bitcoin is because of the risk of its citizens getting scammed by those online hoodlums who always get people scammed through bitcoin and this singular act of scam has already painted so much wrong image of bitcoin already and the government has already warned all banks and the cbn from getting involved in any cryptocurrency transaction.
And another reason is the fact that bitcoin is decentralized and if accepted, will be very difficult for the government to country or have dominance or its citizens hence they’re doing really hard to fight and I think they already have wrong advisers around them .

Your concern about governments banning bitcoin to protect citizens from scams is real. The criminal element has tarnished bitcoin's image in the eyes of many governments and their citizenry. Please be honest. Scammers will take any opportunity to profit, but should they obstruct technical advancement? I doubt it.

Bitcoin's decentralization does strip governments of some authority, but isnt that its essence? Bitcoin was created to empower individuals without intermediaries. Some governments may see this as a threat to their power. One needs to wonder if governments are actually serving their citizens' best interests or merely resistive to change and afraid of losing control.

Some governments have given reasons to protect their citizens from scams and they decided to ban bitcoin, but is that the real reason or just an excuse? Because have they really stopped all the scams involving fiat currencies? Even without bitcoin, scams still happen every day and why haven't they solved it yet?

They banned it because it was uncontrollable and they feared their power would be shaken if bitcoin became popular and widely used, there is no second reason for them to ban it. It's all just an excuse because bitcoin is too perfect to find weaknesses. Bitcoin creates decentralization and promotes privacy, and that goes against the government's policy toward its citizens.

[stadus]

There's only one reason to consider banning Bitcoin, and that's if a government doesn't like it. Because if they do appreciate Bitcoin, they'll find a way to regulate it. It's really a choice between the two – either ban it or regulate it.

While some countries have chosen to ban Bitcoin, it's essential not to worry too much. Many countries have opted to regulate it, and that's a reason to be optimistic about Bitcoin's future. Governments that currently ban Bitcoin may change their stance in the future, especially when they see the widespread adoption and the potential for tax revenue. After all, Bitcoin knows no boundaries. When properly regulated, it can lead to economic improvement in a country.

We're in the digital age, and even in economically challenged countries, people can find online job opportunities and get paid in Bitcoin. This can be a solution to address unemployment and underemployment issues. Countries willing to outsource jobs can save on costs, and at the same time, they can benefit the poorer countries where the cost of living is lower.

Governments should consider these opportunities, rather than simply banning Bitcoin because they don't like it. Banning it would mean depriving people of a chance to improve their financial well-being and contribute to overall economic growth.

[Learn Bitcoin]

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.

You already answered yourself. First, some country's government doesn't even know how it works and why it's good for people. Even if they know, they want their people to use bitcoin because they will miss a huge commission. If their people use alternative methods like banks and other financial services, the government will get a commission from each and very transaction while bitcoin does not provide any commissions to the government. The government won't be able to control people's money. They won't be able to use your money whenever they want. Bank does business with their customer's money. It's like frying a fish with it's oil.

[Minecache]

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.

You already answered yourself. First, some country's government doesn't even know how it works and why it's good for people. Even if they know, they want their people to use bitcoin because they will miss a huge commission. If their people use alternative methods like banks and other financial services, the government will get a commission from each and very transaction while bitcoin does not provide any commissions to the government. The government won't be able to control people's money. They won't be able to use your money whenever they want. Bank does business with their customer's money. It's like frying a fish with it's oil.

I agree with you on what you said that governments don't want their citizens to use bitcoin instead of banks or fiat. But I disagree with you and the OP in saying that the government knows nothing about bitcoin. Maybe the president and politicians won't know about bitcoin because they have thousands of things to worry about but they have not just one but thousands of consultants and experts in every field working for them. It would be naive to assume they would introduce bans or regulations without knowing anything about bitcoin. I bet the government understands bitcoin better than you and I, let alone the fact that they don't understand how bitcoin works. If they were more stupid than us, they wouldn't be able to lead us.

[Nrcewker]

The main reason why government are against Bitcoins is the decentralised nature of the coin. Due to the decentralised nature of the coin, no governing body or other individual can know, how many Bitcoins a user is holding. As government cannot control the coin, hence they cannot impose tax on it. Now in such situations, many government gets offended and they ban the cryptos in their respective nations. Some government have neither made Bitcoins legal nor made it illegal.

[Fuso.hp]

There are many reasons why a country bans Bitcoin, and most countries don't want to bring these reasons to the public. Some governments think that if Bitcoin is allowed in their country, they will not be able to control their country's economy, while some countries' governments think that if Bitcoin is allowed in their country, people will deposit their money through Bitcoin instead of keeping money in banks, which will result in their country's money going out , while some countries may ban bitcoins in the country considering their country's education rate. For example you mentioned China and Russia here, I know you all have very good economic condition of China and Russia, why they are not allowing Bitcoin in their country despite having good economic condition, there may be some reason behind it. Maybe they don't want another currency to rule their country. 
Different countries generally play different roles in banning Bitcoin.

[bettercrypto]

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.

The very main reason why I believe some countries have negative approach towards bitcoin is that this market is decentralized.
So the government has no hold or no control on this currency and that they don't want to deal with such uncertain market.
Also, the point that most of these officials up until now are not really educated to this market, hence, their hesitation to include this in their financial plans.
So I guess, learning this market will give them more insights and be more open mind as this market will continue whether they will participate or not.

Exactly these features of Bitcoin cannot be accepted immediately by a government, so even when the impossible is not possible for them, that is why Satoshi Nakamoto is so talented, and he thought of doing it for people who don't just have financial problems, but also for other entrepreneurs who will be open to it.

Because the government cannot manage Bitcoin, they created another alternative to control other digital currencies, thus the government created restrictions on other cryptocurrencies that they can control in some way.

[n00ber]

There are many reasons why a country bans Bitcoin, and most countries don't want to bring these reasons to the public. Some governments think that if Bitcoin is allowed in their country, they will not be able to control their country's economy, while some countries' governments think that if Bitcoin is allowed in their country, people will deposit their money through Bitcoin instead of keeping money in banks, which will result in their country's money going out , while some countries may ban bitcoins in the country considering their country's education rate. For example you mentioned China and Russia here, I know you all have very good economic condition of China and Russia, why they are not allowing Bitcoin in their country despite having good economic condition, there may be some reason behind it. Maybe they don't want another currency to rule their country. 
Different countries generally play different roles in banning Bitcoin.

To me, the government doesn't have too many reasons to ban bitcoin, they only have one reason, which is that it is decentralized. The decentralized nature of bitcoin is the only factor that makes it impossible for governments to be friendly towards it as it would destroy a host of government regulations and rules put in place to control us. But they never revealed that reason to the public and also gave hundreds of other silly reasons.

But government resistance to bitcoin is also gradually failing because they cannot stop people from using it and its adoption is gradually happening faster than in previous years.

[danadc]

Governments do not want to receive any type of benefits to the people who reside in their countries because they are the only ones who want to keep the benefit of having a lot of bitcoin, and in fact they cannot do so, because they have more resources than the people, they can regulate Because prohibiting there will come a time when they will not be able to resist all that pressure, the eprsoans will seek to have a better vision and will look for countries where they are not prohibited from having bitcoin, because bitcoin is a way to get out of the FIAT money system where they want to do something like that to everyone. like slaves, where they give you little to do a lot.

[GbitG]

Every country has its own lame excuses for not adopting Bitcoin. Someone is making false claims due to its volital nature that Bitcoin is harmful due to its decentralized nature. Bitcoin cannot be monitored to see how many and who are still engaged Bitcoin users. This means that every country has presented its own lame excuses for banning or restricting Bitcoin. I will tell you about my country that the government of our country has put restrictions on Bitcoin because they say that it is a money laundering asset, and it is a straight-forward way for money laundering used in an easy way. But this claim is based on such a weak argument that anyone can raise objections to it.

Now, new software has been introduced for this money laundering, AML, through which they can check transaction details and also account details based on assets to prevent money laundering, but now they are not obeying. In the same way, every country has its own excuses regarding Bitcoin, but the fact that the reason for the ban or restrictions on this Bitcoin, in my opinion, is only the fait currency, which gives these government officials money in the centre of the fait (banks). Making decisions against and banning Bitcoin

[komisariatku]

    

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.

I'm not sure even if their economics department knew the concept of bitcoin properly, they would just use and legalize it. Bitcoin is a decentralized currency and cannot be manipulated or interfered with. For countries this is a problem because they cannot organize and do something if the price of goods rises, there is too little money, and there is too much money in the market.

Regulating the economy and monetary policy is not something simple, in many cases the state sometimes needs to intervene so that money, goods and people's needs are balanced, if something is unbalanced it will have market consequences. So there are many things that need to be thought about and considered before a country dares to take a policy of legalizing bitcoin for payments.

[Learn Bitcoin]

Maybe the president and politicians won't know about bitcoin because they have thousands of things to worry about but they have not just one but thousands of consultants and experts in every field working for them. It would be naive to assume they would introduce bans or regulations without knowing anything about bitcoin. I bet the government understands bitcoin better than you and I, let alone the fact that they don't understand how bitcoin works. If they were more stupid than us, they wouldn't be able to lead us.

I don't know about other countries. But I know about my country. The government doesn't know anything good about Bitcoin. They have experts in every field, and those experts use Bitcoin secretly. LOL. They think Bitcoin users are criminals. Only criminals use Bitcoin to pay for their crimes. Some ministers have good knowledge of Bitcoin. For example, the Bangladeshi IT minister knows about Bitcoin, and he always supports it. But others do not agree with him because others don't understand how it works and why it's good. Some government Anal-yst say Bitcoin will open the door to money laundering. They sounds like money laundering is not happening without Bitcoin.

[LittleBitFunny]

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Regulating the economy and monetary policy is not something simple, in many cases the state sometimes needs to intervene so that money, goods and people's needs are balanced, if something is unbalanced it will have market consequences. So there are many things that need to be thought about and considered before a country dares to take a policy of legalizing bitcoin for payments.

This is something not everyone understands, and many people think that regulating the economy is very simple, and that is why many people always complain about the government. It wouldn't be a problem if bitcoin were only legal as a commodity and strictly regulated, but if it became a currency, destroying a country's economy wouldn't be so difficult. The economy needs to be closely monitored and regulated and to do that, the government needs a tool to do that and that is fiat, which they can intervene in at any time to balance economy. There are actually a lot of things to consider and handle before accepting bitcoin as currency, which is not easy for the government.

[armanda90]

First time my country have bad viewed with bitcoin transaction and many my citizen bad opinion with bitcoin such as not more valuable in the future until claimed as gambling kinds of bitcoin. But after huge transaction in daily day, my government have good viewed with bitcoin and get bigger opportunity to earn more taxes with huge bitcoin transaction in daily day. Have been two years with my country Indonesian adopted taxes for all cryptocurrency transaction when selling or buying in local exchange decentralized, we have to pay taxes not matter your position profit or loss during trade on local exchange must pay taxes.

For the future have good viewed with bitcoin in my country, first have bad mindset and right now bitcoin huge profitable with taxes income for government and they can earn much income when huge transaction in our local decentralize exchange.