Is banning crypto helping or hurting a country's economy?

[Junii]

Some countries have banned crypto,saying it cause scams and financial instability.But others argue it blocks innovation and pushes investors underground.Whats your opinion-does banning crypto protect citizens or stop progress?

[letteredhub]

The argument that the ban on cryptocurrency in a country blocks innovation and suppresses investors is true, instead the government in those countries could create an appropriate regulatory policies serving as guideline that could provide enabling environment that would prevent scam and safeguard investors. Crypto driviee innovation and attracts investors from different industries and sectors.

[Dunamisx]

To place ban on crypto is to indirectly stage a war for the young generations against their privilege to several opportunities this advance technology might have brought our ways, so many will fight it well to an extent, because it has provided with lots of opportunities we couldn't have seen from the centralized economy and government, if they succeeded to ban crypto, there will be much dependency on the failing economy and the masses will mostly be affected.

[Stalker22]

Banning crypto?  Thats way more about control than keeping people safe.  Its the easy, but wrong, way to do things.

It wont stop scams, it just gets in the way of progress.  Its more about keeping the banks happy and the old money people in charge than helping regular people.

[passwordnow]

Some countries have banned crypto,saying it cause scams and financial instability.

They have to look at their records for what's the source of these scams and how they started. Scams have been there even before the days of Bitcoin's existence. And as for financial stability, it lies within someone's ability on how they are going to manage their financial status.

But others argue it blocks innovation and pushes investors underground.Whats your opinion-does banning crypto protect citizens or stop progress?

It's best for them to study it carefully and don't just be one-sided. What they're doing is banning it based on what they think is wrong without backing it with evidence showing that it's changing people's lives and helping everyone with their personal economy and finances. They can compare it with how technologies have been in slow adoption before and so as bitcoin. Just like what this graph says, only 3% of adoption rate we've got and based on tradingview's article[1], only 4% of the world is holding it. This means that we're still early for adopting it, don't they like being the first few to adopt it?


[1] Only 4% of the world's population holds Bitcoin in 2025: Report

[Findingnemo]

Some countries have banned crypto,saying it cause scams and financial instability.But others argue it blocks innovation and pushes investors underground.Whats your opinion-does banning crypto protect citizens or stop progress?

Governments claim that crypto or bitcoin is the reason why internet scams are happening, then it's lie, the scams exists all over the internet and people also use the bitcoin users and lure them into their traps. And if they are talking about money laundering of financing terrorism then it also false because it were there even before Satoshi invented bitcoin.

BTW, this is how it looks when the government bans Bitcoin.

[IIrik11]

BTW, this is how it looks when the government bans Bitcoin.

exactly right!

take india for instance. india has not officially banned bitcoin rn but what it has done is put 30% tax on any bitcoin/crypto gains, which is ludicrous if u ask me

the capital gain tax for stocks in the country is 10% for a financial year and on top of that there's rebate if ur total gains are less than 1 lakh inr u pay no tax

due to this 30% hefty tax many investors look for ways to buy/sell bitcoin/crypto through p2p trying to avoid this insane tax & they often fell for scams

if the govt. had applied the same capital gains tax on bitcoin/crypto like they do in stocks. most people would not try to hide their transactions and would freely buy/sell

like they do for shares in stock market,, and in doing so, govt. would have collected more tax as more people would have invested/traded using registered cex

so by putting this huge tax, govt. is losing money on taxes and people are falling for scams trying to buy/sell bitcoin/crypto through other means

but the government and their highly paid economics specialists fail to understand this simple fact

[DanWalker]

To be fair, since cryptocurrencies tend to promote privacy and decentralization while government is a centralized system. Therefore, adopting it will also cause certain disadvantages and difficulties for the government, they will have difficulty in managing the people as well as the national cash flow. But they should not ignore the benefits and advantages it brings to the overall economy of the country. Moreover, they can address those disadvantages and difficulties with regulations, not without solutions. Therefore, they should not ban it completely because it is technology and the future of finance.

Because it is the future, banning cryptocurrencies only causes disadvantages and hinders the overall innovation and development of a country, IMO. Countries that still impose outright bans on crypto will soon pay the price.

[Sim_card]

Some countries have banned crypto,saying it cause scams and financial instability.

That's a stupid excuse to come up with for banning crypto. Fiat is used for more scam than crypto daily. Before crypto came into existence was there no scam. Banning crypto will make the citizens in that country not to benefit from the opportunities in cryptocurrency and will affect the country economy indirectly. This is because there are different ways to make profit from crypto which will limit the citizens from being independent from the government.

[Judith87403]

Some countries have banned crypto,saying it cause scams and financial instability.But others argue it blocks innovation and pushes investors underground.Whats your opinion-does banning crypto protect citizens or stop progress?

The truth is even if bitcoin is ban in a country it won't even prevent people from getting scammed so those countries who think that bitcoin is the cause of those scamming cases that keeps happening is making a very big mistake. Though i don't mean to dispute on the fact that bitcoin contributed to this scam cases but they shouldn't have move that far, imagine if everyone maintain privacy did you think that scammers can gain access to our wallets or our belongings? But is due to ignorant and also not being cautious that lead some people into falling in the hands of scammers, so Even though the government chose to ban bitcoin in a country yet scam will not seize to exist. The Best thing to do is just to warn the citizens to be extremely careful.

[Franklyn-wood]

Some countries have banned crypto,saying it cause scams and financial instability.But others argue it blocks innovation and pushes investors underground.Whats your opinion-does banning crypto protect citizens or stop progress?

Ignorance can make someone to keep thinking that he's always right in his doings.
Few countries that had banned Bitcoin are now purchasing it and some that think they are not yet prepared to buy and hold Bitcoin would finally realize their mistakes soon, maybe by that time the price of Bitcoin would have exceed $200k.
Those who choose to ban Bitcoin should continue in their superficial knowledge about the Bitcoin potential resulting to revenue accessible in a long term basis.

[Gozie51]

Some countries have banned crypto,saying it cause scams and financial instability.But others argue it blocks innovation and pushes investors underground.Whats your opinion-does banning crypto protect citizens or stop progress?

Most government that have made attempt to ban bitcoin or cryptocurrency have done that for the fear of their local currency, they fear it is going to distablize it because bitcoin is used as both money and asset reserve and that is why they made attempt also to create digital currency or version of their own fiat. China had this issue back then around 2017 but bitcoin was not stopped and lastly they couldn't fight it anymore and created yuan digital version. The point is that cryptocurrency or bitcoin is not going to be stopped by whatever propaganda. Some countries are rescinding their decision to limit the use of bitcoin. Before bitcoin, there have been corruption of, embezzlement and nepotism in government and so it is never a bitcoin cause.

[Doan9269]

When a country bans crypto, they cease the opportunity that could come through it and also denied the people who could have benefited form its adoption in that same country, what could have contributed to the economic growth of the country already had been denied and things may often remains the same as always in the country and with the way of running their economy.

[Findingnemo]

BTW, this is how it looks when the government bans Bitcoin.

exactly right!

take india for instance. india has not officially banned bitcoin rn but what it has done is put 30% tax on any bitcoin/crypto gains, which is ludicrous if u ask me

When a government tries to impose unfair tax and discourage the users from crypto indirectly then it is going to bring the opposite outcome, the government will lose their tax revenue because people won't be interested in paying when they thought this is unfair tax rate  and also this will increase the unregulated market to grow big while the users will be left with security concern.

It needs the right kind of people to understand the situation instead of simply hating the technology which will also benefit the economy in long run.

[Kelward]

The argument that the ban on cryptocurrency in a country blocks innovation and suppresses investors is true, instead the government in those countries could create an appropriate regulatory policies serving as guideline that could provide enabling environment that would prevent scam and safeguard investors. Crypto driviee innovation and attracts investors from different industries and sectors.

You can only delay something that has value but you cannot deny the people what they want for so long, one way or another it is either the government does what is needful or some of the people will find a way around. I am glad that some countries that were skeptical about cryptocurrency especially Bitcoin are now turning around to accept it with friendly regulations. These countries that are still hostile towards Bitcoin can do the same, focus on regulations rather than banning it so that their citizens can freely join the rest of the world to enjoy the benefits of cryptocurrency. Bitcoin perticularly has built a solid reputation as a store of value and that is why the adoption is increasing rapidly, any government that is still denying it's citizens to enjoy the privacy and profit of Bitcoin is not being fair to it's citizens.

[Zlantann]

Some countries have banned crypto,saying it cause scams and financial instability.But others argue it blocks innovation and pushes investors underground.Whats your opinion-does banning crypto protect citizens or stop progress?

When I hear people say that allowing crypto to thrive in an economy will improve, I usually disagree.  Bitcoin or altcoins are not the only solutions to the economic problems of Nations. It could help create jobs, promote innovation and technology, provide an alternative medium of payment, and attract investors, but the government has a major role to play in the economic development of a country.

The notion that crypto promotes crime is false because fiat is more suitable for criminal activities. After all, cash cannot easily be traced.  Banning crypto will simply restrict the opportunities that crypto offers and drive people to use unregistered platforms. The government will also lose tax revenue and citizens will lose employment opportunities.

[Hispo]

Some countries have banned crypto,saying it cause scams and financial instability.But others argue it blocks innovation and pushes investors underground.Whats your opinion-does banning crypto protect citizens or stop progress?

No country can effectively ban cryptocurrencies from their territories, as cryptocurrencies are resistant against censorship and their decentralized infrastructure make is impossible to keep away from the hands of certain citizens, even if the government wanted.
Banning Bitcoin and other crypto assets just means the government won't be able to collect taxes from capital gains from traders and investors, and it means the country will be left behind, while the whole world continues to advance.

It is better if the country embraces cryptocurrency and have a flexible regulation for it, instead of trying to ban something which cannot be banned

[r_victory]

Cryptocurrencies are becoming an investment trend. Large institutions are investing heavily in blockchain technology, including major banks that were previously averse to it. Banning cryptocurrencies, in my opinion, is a step backward; it closes doors to opportunities for wealth and prosperity. It certainly impedes or limits economic growth.

[Btcdeybodi]

Some countries have banned crypto,saying it cause scams and financial instability.But others argue it blocks innovation and pushes investors underground.Whats your opinion-does banning crypto protect citizens or stop progress?

I don't have a problem if countries are banning cryptocurrency but to also include bitcoin is where i see that they are getting it wrong because bitcoin is not as scam and it will even be laughable if any country sees bitcoin as what will cause financial instability to them. Bitcoin is built with strong blockchain technology that is very transparent for all to see which means that every transaction is recorded in the blockchain. If any country sees that people are using bitcoin to scam they should rather go after the scammers instead of placing a ban. Banning crypto cannot prevent citizens from getting scammed, before bitcoin was introduced haven't people been using fiats to scam? i wonder why any country will see bitcoin as a threat to them. I specifically emphasized about bitcoin in my reply because that's the crypto am interested in, the rest can go into extinction i don't care 

[Sticky Bomb]

Some countries have banned crypto,saying it cause scams and financial instability.

That's a stupid excuse to come up with for banning crypto. Fiat is used for more scam than crypto daily. Before crypto came into existence was there no scam. Banning crypto will make the citizens in that country not to benefit from the opportunities in cryptocurrency and will affect the country economy indirectly. This is because there are different ways to make profit from crypto which will limit the citizens from being independent from the government.

You've a point here, Fiat is used to launder more money than crypto. The government pushing crypto as more scam prone is in a desperate attempt to fight it's adoption by the masses. It's another big lie beside the already existing one that Bitcoin mining consumers more power and causes environmental hazard more than other mining activities. Fiat scam is as old and advanced as ever with reports of credit card hack, wire fraud and other kind of cyber crime fraud and Fiat money laundering which constitutes of a greater percentage of financial crimes but they would choose to tackle crypto by banning it. Every government that bans crypto currency is shooting itself on the fit because it's citizens would still use decentralized means to engage in crypto and the government wouldn't get to take their share of profits through taxes.