Why governments fear cryptocurrency

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Today every thing indicates that most government of the world today fear cryptocurrency greatly and they exist an abundance of reason why this is so and these reasons I would be sharing today, some maybe be legitly valid while others for their own interest well whatever that might be I will share details regarding some of them below.

It's true that the idea of cryptocurrency replacing the existing financial order of things is enough scare as it is to them and many are doing everything possible to stop or squash cryptocurrency though few others are recently coming to accept cryptocurrency but no doubt amongst the great number of them there is a strong dislike or fear of cryptocurrency.

I will share some of their concerns or where they fear cryptocurrency here

Governments have several reasons for fearing cryptocurrency, primarily due to its potential to disrupt existing financial systems, enable illicit activities, and undermine state control. Here are some key concerns:

Lack of Control

These is one of the major reason why governments today fear the idea of cryptocurrency, I mean they love fiat which they have absolute control of and feel cryptocurrency is out of their control. No matter how much they regulate it's use the fact that cryptocurrency runs on decentralized network means they would never have as much control as they would have wanted.

Because of lack of central authority on cryptocurrency it makes it a major concern to government and they truly do not want a currency which they don't control because that would entail that the regulations would be much harder unlike the fiat controlled currency where they government easily also control the flow of money as they seem fit, when it comes to cryptocurrency their control is very limited and as such they hate it and even fear cryptocurrency so to speak.

So lack of control caused by cryptocurrency being operated on decentralized network is one major reason why governments fear cryptocurrency.

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Tax Evasion

This is another source for major concern by government of the world today, as crypto has been utilise to great effects by many to hide their true income as a way to evade tax, so the fact cryptocurrency is being used easily by many to avoid government imposed tax which helps in the running of the country is also another reason why governments fear cryptocurrency.

Cryptocurrency has an anonymity feature one especially seen in privacy coins and this has been utilized to great effects by many businesses and individuals to avoid paying tax. When the true income of a business is not accurately know it helps to reduce the amount of tax they pay as the calculation could only be made using the visible income or traceable one and government frown at this and this is what cryptocurrency has afforded business organizations and individuals today an ample opportunity to evade tax.

Tax evasion made possible by the anonymity of cryptocurrency makes government to fear cryptocurrency use.

Illicit Activities

Cryptocurrency has also been used in carrying out so many fraudulent and dirty business activities both in small and large scale, I mean cryptocurrency is used as a payment option for those involved in these illegal activities and this Payments can't be tracked or traced because they used cryptocurrency in making it which is pseudonymous in nature and it's a major concern for government.

This is a major concern to concern because if it's through banks they could easily track this transfers and make sure this dubious persons are prosecuted according the full weight of the laws when caught but because it's done using cryptocurrency it makes the job of the government harder as those responsible for enforcing the laws of the state can't trace cryptocurrency transactions to anyone especially one done using private networks which becomes a challenge.

This makes it easier for terrorist operation to be easily financed and money to be laundered on a grand scale without the government being aware of it, let's just say cryptocurrency has made it easier for criminals to easily transact without being noticed or fear being caught so that's why cryptocurrency has become something of a major concern to governments.

Financial Stability

Also there is fear of financial stability being disrupted by the wide adoption of cryptocurrency, they fear if cryptocurrency is adopted on a grand scale it could lead to markets and other major financial institutions suffering major destabilization. Well is this a legit concern? Well yes it is considering the nature of cryptocurrency.

Cryptocurrency is highly volatile so the fear wide adoption to the fact the economy depends on it could mean that the economy could easily be as unstable as cryptocurrency is, imagine when an economy is volatile easily changing that really would cause destabilization in the global markets they fear, the fear that the instability in cryptocurrency prices would lead in destabilization of the world financial order if it's adopted.

So financial stability becomes a major concern for many governments as they fear cryptocurrency could not be able to provide this.

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Conclusion

These are some of the reasons why many governments of the world today fear cryptocurrency use but ofcourse some of these concerns could be mitigated if all come to the board to look for a solution instead of fighting against it because the more the fight against cryptocurrency the more it's dominance rise and they could even be left out if they don't jump in on the moving train because like it or not cryptocurrency is the future of money though they have valid reasons to be concerned though.