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Why do governments hate Cryptocurrency?

The government knows that decentralization will make them less autonomous.

world map

Cryptocurrency, once a digital revolution in the history of money, has now become a mere investment tool for this new generation.

Bitcoin, the first Cryptocurrency was made by the creator Satoshi Nakamoto, and his dream was to make currency decentralized and remove the presence of intermediaries between any transaction and make it anonymous.

He literally introduces the world of blockchain, a digital world, to this real world. His intent was very appreciable and has the future in it.

Many top banks of the world have started using blockchain for storing their files and transaction information.

While the banks are using the blockchain effectively, on the other hand, people have started misusing digital currency for illegal work and for mere investment tools.

Cryptocurrencies are more than just a mere investment tool. It’s the future of money.

Government’s Interest

Government from all around the world are cracking down the Crypto exchanges and restricting their banks to have further contact with these exchanges.

Banks earn money when people deposit money in their bank, and they give some interest for it to the people, and then the bank uses this fund to fund the loans for the people and also earns interest from them.

This whole process is very beneficial for the bank, and to the economy, because the money is circulating in the system.

People’s Interest

Today’s generation is very much aware of the personal-finance, and they know the power of Investing.

They know simply depositing money into a bank or creating FD's will bring them no wealth, because all their returns will be lost due to rising inflation.

So people rather invest in Crypto Currencies and Stocks to get returns and make their money work, rather than sleeping their money into Banks.

Though it is risky to invest in these markets, they also come with great returns.

Conclusion:

While people are getting more into crypto projects and adopting blockchain, the governments are trying to find ways to regulate cryptocurrencies and make their returns taxable.

They are also finding ways to restrict the use of Cryptocurrencies for criminal activities and terror financing. Though it's very difficult to know the identity of the sender and receiver in the blockchain transaction, the government is still trying to find some ways to make it easier to know a little about these transactions and blockchain.

Government concern is also good because terror organizations do use crypto for their activities, and it's not that government just wants to be autonomous and rule.

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Himanshu India

Himanshu India

Crypto and Finance enthusiast and avid reader of Indian Culture.

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