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

[Stalker22]

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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.

[TheUltraElite]

Frankly, I do not believe the government will make Bitcoin legal tender in the future. Because that wouldn't really benefit them.

The governments love one thing above all and that is taxation. They know people are hoarding bitcoin and they want to get tax from it. So someone with a bright mind will come up with some cunning idea that will force people to reveal their holdings and pay taxes on them.

This does not necessarily mean that bitcoin would become a legal tender, but a taxable asset. By doing so they can control the amount of bitcoin we can hold in our wallets while having to pay the government some for it too.

But I feel this day is long away from now, but who knows?

[Iranus]

One of the reasons why governments are not accepting Bitcoin is that governments cannot control Bitcoin. The way governments usually control everything related to the country's finances through their central banks will never be possible with Bitcoin. Moreover, due to Bitcoin being extremely volatile, governments have not been able to gain full confidence in investing in it. Lack of education about Bitcoin is another reason why governments are not yet interested in Bitcoin adoption, but those who are gaining knowledge about Bitcoin are researching how to make Bitcoin usable in all area. The governments of many countries have started investing in Bitcoin. They have launched educational programs about Bitcoin in their countries so that they can quickly gain good knowledge about Bitcoin and develop further in the world economically.

I do not think they lack knowledge or do not understand it. Bitcoin is not too difficult to understand, and even ordinary people like us do not need much time to grasp it. Meanwhile, the government has no shortage of resources to study it, they understand it better than any investor. Do not underestimate them, it is simply because they can not control it, and thats why they haven't accepted bitcoin yet.

Furthermore, volatility is a barrier that makes them hesitant to add it to national reserves. Because what the government need is a stable asset to protect the economy, not speculative asset.

[rezakurnia66]

If you understand well about how much advantage of bitcoin for many people I believe if you are politician will not legalizing bitcoin as payment transaction, nowadays many nation still not allow bitcoin as payment transaction because will make their fiat loss popularity and many people moving their money from the bank investing in bitcoin.
I think this giving bad opportunity for Bank and every nation if legalizing bitcoin as payment transaction, its main problem for many top nation when legalizing bitcoin as payment transaction will make their local fiat loss popularity and many people easily moving their payment method from fiat to bitcoin.

[cxtreenal]

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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.

The central bank adopts and implements monetary policy according to the will of the government. Fiat is easily manipulated. Bitcoin cannot be manipulated by any centralized government. The financial situation of a poor country's government can get worse due to poor financial decisions. Since their foreign exchange reserves are limited, they have to take measures to pay domestic or foreign bills. Due to resource constraints, they have to print fiat to pay the bills. The manipulation of printing fiat without proper implementation and the limitation of the country's resources creates inflation.

Since Bitcoin is a decentralized resource and its supply is limited there is no scope for manipulation so the government wants to stop the progress of Bitcoin to hide its financial failure. But their stupid decision cannot hinder Bitcoin holdings for the intelligent community of the world.