Despite the growth of bitcoin why haven't it been legalized by many nations?

[Stalker22]

~

Understanding Bitcoin is not too difficult for central banks and government officials, they simply cannot stand it, just as a lion cannot ever be "fully accepting" of being in a cage.

Central banks and governments do not dislike Bitcoin because they are "in the Dark Ages" or are stupid about technology.  They dislike it because it does the one thing it was meant to do: render them irrelevant.

[DeeppRockk]

The core issue isn't just technical feasibility; it's about power dynamics.

Governments resist Bitcoin because it threatens their monopoly on money creation and financial control.
While centralized exchanges with KYC can be regulated, the underlying protocol's decentralization remains a challenge.

This isn't merely about money laundering fears - it's a fundamental clash between traditional financial systems and a permissionless network.

Even if some countries adopt it, others will likely push back to maintain their economic authority.