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.

[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]

~

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.

[Stalker22]

~

Yeah, I agree.  Governments tend to print more money when they are in debt, especially when they are broke.  Since they can print as much as they want, the money loses value, causing inflation.  Some think governments want to stop Bitcoin because it exposes their poor economic management.  If people switch to a currency that cant be printed easily, the government loses its ability to spend money it doesnt have.  Even if they try to ban it or slow it down, they cant really "turn off" a network that is run by the people, not the politicians.

[Aloysius01]

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to full accept it is or permit it's exchange?

There are a few reasons but i think it hasnt been legalized because it is a rather new Asset according to the standard of Worldwide adoption. It has been around for 16 years, A long time but it hasnt proved its stability yet as it had many ups and downs in these years.
 another reason might be POWER, Governments Dont like losing Power and with Bitcoin's Decentralisation they are very likely to lose it as it gives people power in their own hands unlike Fiat Currency.

Because they have their own reason:

1. It's harder for them to tax the money, people have a way to cash out privately which make them can't maximize the tax, unlike stock, ETFs where everything recorded in centralized sites.
2. They're a country where most of the citizen are Muslims, Bitcoin is haram in Islam, hence they ban it.
3. They hate Bitcoin.

Your first point is right but i might have to disagree with point 2, and 3. Point.2 I am a muslim and can assure you that it is not haram in islam if you use it for preserving wealth or as an investment but it is when you use it For Gambling or other haram stuff. Point.3 i dont think thats true because no one hates anything that gives them profit or something valuable in return which bitcoin does so hating it is not a reason to not legalize it. It is not the Main reason for not legalizing but they can not like it because it gives them a loss. which discussed in your point 1

I agree with most of what you said especially point 1 Taxation and control are probably the biggest reasons governments are hesitant Bitcoin makes it harder for them to fully monitor and tax transactions compared to stocks, ETFs or banks where everything is centralized and reported,on point 2 I don't really agree either I'm a Muslim myself and Bitcoin itself isn't haram by default like many tools, it depends on how it is used, if someone uses it for gambling, scams, or other haram activities, then yes that uses is haram, But using Bitcoin as a store of value for savings or long term investment isn't inherently against Islam, Also many Muslim majority countries banning crypto do so for economic or regulatory reasons not purely religious ones, As for point 3 I don't think hate is the right word, Governments don't usually ban things just because they hate them, it is more about perceived risk and loss of control, Bitcoin challenges their monopoly over money, capital flows and monetary policy, if something threatens that power or reduces their ability to manage the economy, they will naturally resist it.
So in my view, it mostly comes down to control, regulation and taxation, not religion or personal dislike, Bitcoin shifts power toward individuals and that is something many governments are not comfortable with, at least not yet.

[Aloysius01]

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to full accept it is or permit it's exchange?

There are a few reasons but i think it hasnt been legalized because it is a rather new Asset according to the standard of Worldwide adoption. It has been around for 16 years, A long time but it hasnt proved its stability yet as it had many ups and downs in these years.
 another reason might be POWER, Governments Dont like losing Power and with Bitcoin's Decentralisation they are very likely to lose it as it gives people power in their own hands unlike Fiat Currency.

Because they have their own reason:

1. It's harder for them to tax the money, people have a way to cash out privately which make them can't maximize the tax, unlike stock, ETFs where everything recorded in centralized sites.
2. They're a country where most of the citizen are Muslims, Bitcoin is haram in Islam, hence they ban it.
3. They hate Bitcoin.

Your first point is right but i might have to disagree with point 2, and 3. Point.2 I am a muslim and can assure you that it is not haram in islam if you use it for preserving wealth or as an investment but it is when you use it For Gambling or other haram stuff. Point.3 i dont think thats true because no one hates anything that gives them profit or something valuable in return which bitcoin does so hating it is not a reason to not legalize it. It is not the Main reason for not legalizing but they can not like it because it gives them a loss. which discussed in your point 1

Despite the massive growth, advancement and advantages of Bitcoin and most crypto currency, why is it hard for most countries to full accept it is or permit it's exchange?

There are a few reasons but i think it hasnt been legalized because it is a rather new Asset according to the standard of Worldwide adoption. It has been around for 16 years, A long time but it hasnt proved its stability yet as it had many ups and downs in these years.
 another reason might be POWER, Governments Dont like losing Power and with Bitcoin's Decentralisation they are very likely to lose it as it gives people power in their own hands unlike Fiat Currency.

Because they have their own reason:

1. It's harder for them to tax the money, people have a way to cash out privately which make them can't maximize the tax, unlike stock, ETFs where everything recorded in centralized sites.
2. They're a country where most of the citizen are Muslims, Bitcoin is haram in Islam, hence they ban it.
3. They hate Bitcoin.

Your first point is right but i might have to disagree with point 2, and 3. Point.2 I am a muslim and can assure you that it is not haram in islam if you use it for preserving wealth or as an investment but it is when you use it For Gambling or other haram stuff. Point.3 i dont think thats true because no one hates anything that gives them profit or something valuable in return which bitcoin does so hating it is not a reason to not legalize it. It is not the Main reason for not legalizing but they can not like it because it gives them a loss. which discussed in your point 1

So in my view, it mostly comes down to control, regulation and taxation, not religion or personal dislike, Bitcoin shifts power toward individuals and that is something many governments are not comfortable with, at least not yet.
As for point 3 I don't believe it is about hate, Governments don't hate things that can generate value, The issue is that Bitcoin reduces their control over money and capital flows, when something threatens their power or revenue they tend to resist it

[chigo]

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.

Central banks' views on Bitcoin are clear, they don't recognize it because Bitcoin's principles seem to eliminate the role of central authorities in issuing, controlling, and regulating money, which directly challenges what banks offer. That's non-negotiable. And this is why Bitcoin will always be so difficult to accept as legal tender, and it will forever be considered a speculative/investment asset by banks, operating outside the traditional financial system and not used as a medium of exchange.