Why various counties are turning hostile to cryptocurrencies?

Just before this month, India’s central bank, Reserve Bank of India (RBI), directed all scheduled commercial/merchants banks and other financial entities to sever their connections with the traders of cryptocurrencies within three months. On April, 6, 2018 the State Bank of Pakistan (SBP) announced its ban on cryptocurrency trade in the country. Just some weeks ago the Bank of Montreal, in Canada, halted cryptocurrency trade, by disallowing the purchasing of cryptos via credit card. Canadians already had limitations to purchase cryptos via exchanges, and now one of the major banks there, made it almost impossible for them to trade in cryptos.

In the US, some months ago, the Bank of America, J P Morgan Chase and Citigroup had banned purchasing of cryptos via credit cards and soon or later they may also ban e-fund transfer for the same.
Everyone is aware of what China and S. Korea and other countries are doing to regulate or ban cryptos.

Also, countries like Venezuela, China, Russia etc have worked on or working to launch their own Government Controlled Cryptocurrencies (GCCs) and now India has also joined this league when RBI announced that it is looking for the opportunity to launch its own cryptocurrency. Soon or later every country will launch its own cryptocurrency.

But why these countries are banning or at least trying to regularize cryptocurrencies?

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First of all we should understand that cryptos did not remain fun coins when their market cap crossed billions of dollars worth in 2017. Governments were not paying too much attention towards this industry before 2017. When the price of Bitcoin, including other altcoins, turned into hundreds of times of their initial value and people all around the world began to pump money to buy them, the governments became alert and sought method to ban or at least regulate this industry. Of course this was being contemplated or even implemented much before but this steep price surge and ICO boom left no options before the governments.

Privacy, anonymity and removal of the middlemen (banks) are some of the most striking features of cryptos but these features can also be exploited by the criminal organizations and bad people to easily transact money to conduct their illicit businesses. Money laundering, smuggling, terror funding, drug dealing etc are some of the illicit businesses which can get enormous benefit using any such currency or method that transaction may remain anonymous. And cryptos fulfill this condition. Duping people in the name of fake ICOs and above mentioned features of cryptos gave a fair chance to the governments to take matter in their hands. However, it should not be forgotten that even the government controlled traditional currencies are also being used for Money laundering, smuggling, terror funding, drug dealing and other illicit businesses and the governments were never in the position to control those businesses!

So, why there is so much hue and cry over cryptos?

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Analyzing the above mentioned condition, I came to the conclusion that use of cryptos in illicit businesses should not be the enough reason for the governments to ban cryptos. They have only one reason to ban cryptos that they are afraid of losing their monopoly over the money market. After all, Money is the backbone of every government.

All over the world governments issue currency and regulates money market via their central banks which can control the flow and availability of money by various instruments like changing the rate of interest etc. Banks and other financial institutions earn a huge profit whenever a transaction is done through them. Our transactions like money transfer, money withdrawal, using credit cards for purchasing etc. generate huge revenue for the banks. As the money is the most important factor in human life, no government can afford to lose its control over the money. Cryptocurrencies have potential to disrupt the traditional financial system which can eventually weaken the governments and the powerful persons or render them worthless by deprive them of their control on money. Consequently, it may also be possible that the boundaries of the nations will become meaningless and keeping of armies and huge pile of weapons will no longer be needed, if cryptos are allowed to let loose.

This will be the biggest revolution, mankind has ever seen! But will the powerful people let these mediocre cryptos to ruin the entire financial system which had made them so powerful? Can they afford to lose their control on people or can they let anyone to snatch power from them? The answer is simple ‘no’.

So, they already have started to crush this revolution and I have no doubt that they will be successful not because they are powerful but because cryptocurrencies also have some inherent flaws. Soon the governments will make a system which will give them the immense power to control the masses. Surly, the freedom of citizens will be at stake. First phase of their scheme has already started in the form of developing mass surveillance system and then banning cryptos and the second phase is the launching of their own cryptocurrencies which will ultimately strengthen the mass surveillance system. Third phase will eliminate every possibility of any future revolution. Will cryptos survive or will the authorities become invincible? Nobody knows. But the possibility of the second thing is strong. So, be ready to get free of your freedom.

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Welcome to the new age.

@akdx