Will governments try to ban privacy coins?
Governments have been the sole creator and controller of money so far. However, invention of Bitcoin and other cryptocurrencies have put a threat for governments’ dominance of generating and controlling money and its flow.
Cryptocurrencies have created a parallel system of generating money and are also enabling people to buy and sell things through them without any restrictions. Privacy coins have become a nightmare for governments and their agencies as transactions of these coins are private, fast and anonymous. One can buy or sell illegal things worldwide and cannot be caught by the law-enforcement agencies easily. This has become a great help and gift for the illicit traders and criminals.
Privacy, anonymity, quick transaction and removal of the middlemen (banks) are some of the striking features of cryptocurrencies but criminal organizations and wicked people can exploit these features to transact money for conducting their illicit businesses. Money laundering, smuggling, terror funding, drug dealing, flesh trade, arms dealing etc are some illicit businesses that are getting advantage because of these features of privacy coins. That’s why governments are trying to put ban on these coins. Many countries have banned cryptocurrencies and some are mulling over to issue their own virtual currencies as those will help them to track and monitor every transaction. Government owned cryptocurrencies are the future but they will possess a big threat for the independence of the people.
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That's right. But no government can ban this. Right?
Governments have so many resources. They can do whatever they like. Once they issue their own virtual currencies (not like true cryptos) people will embrace them easily. So, things can change as well. We don't know what may be the future but it doesn't seem very promising to me.