Topic: Is there any benefit of bitcoin to the government? (Read 470 times)

As far as I can tell, the government has no direct or indirect benefit from the bitcoin or any transactions especially if the said government is not supporting it. But for the other countries such as El Salvador and Central African Republic (CAR), it's government is benefitting from the bitcoin and its transactions because they are accepting it and not banning the use of it.

It will be okay if only governments are just looking forward to having some benefit from the use of cryptocurrencies, but that is not what they wanted, they want to take control of it which is impossible because it's decentralized and that is exactly the reason why they are not supporting it.

The sad thing about governments is the fact that they could have been used so amazingly and how it could have made it so much better for the world as well. Think about a world where people who have excess amount ends up paying a bit to provide for the world a situation where governments uses it to just invest into free healthcare, free education and whatever people need and nobody ever want for anything.

I think it is very important to make it work and we should be focusing on what we could make and how it could improve at the same time. However, we all know that the situation is not like that and almost all governments are corrupt and that would be something terrible in the end but we all know that it is not going to be that much better in the near future neither.

Honestly speaking, there are lots of benefits they can get especially when they choose to let bitcoin miners and exchanges operate in their country legally because the tax will be huge and constant because the liquidity and transactions are non-stop and they will get free money from that. But of course, we obviously know that the banks are not gonna let it happen so they always make a counteroffer behind the curtain and we know for whatever reason the government of some country is prohibiting the operations of miners and the exchanges it's all because of the banks and their allies.

Adopting Bitcoin does not mean their citizens will immediately utilize bitcoin payment option, we can take an example from El Salvador. The country's bitcoin adoption did not seem promising, if not lacking. Also, surely the regulation that governs Bitcoin payment transactions will be made in order to reduce tax avoidant, especially by the business that operates there.

So such things you mentioned are fixable. And to encourage its citizen to use Bitcoin aren't an easy thing to do, some percentages of the people will surely still use FIAT.

I don't think the government's main concern with bitcoin is volatility, that's not why they seek to impede bitcoin's growth or advise people to stay away from it. Quite frankly, government is a centralized system while bitcoin is decentralized, if they accept bitcoin, it will break their centralized system, and they will lose power. So that's why they never showed any interest in bitcoin.
The government has never liked bitcoin, but stopping it is almost impossible, and instead, they are looking to accept it with thousands of regulations and taxes, which is what they are aiming for.

Bitcoin has less benefits to government than us, because when ever Bitcoin adopt by country citizen will use Bitcoin instead of fiat which will help them to avoid paying taxes on business revenues and salary, also it can used by corrupt politician for money laundering. But at the same time it benefits too because through Bitcoin government can pay foreign dept with a small fees and it will safe much time for development of country also through Bitcoin they can get idea of his own digital currency which will help them to safe all the money and time which used to print paper money. I think due to such reason most of the government not allow toh adopt Bitcoin

Its still the same bitcoin can also robbed, you need to consider those phising,hacking or many things that can cause your balance lost in your wallet. Also although there's really more benefit to be accumulated if government will just adopt bitcoin we cannot still say this is really good to be immediately implemented since there are many risk that need to take an attention with. Maybe before this to happen they need to have 1 year dry run to test out if this will be effective to them and also to conduct proper bitcoin or crypto education to their citizens.

But one main concern about it is volatility and government doesn't like to see it since they find it so very risky that's why they always releasae a warning about using cryptocurrencies.

With bitcoin you will globalize and spread your business all over. Unlike fiat currency it can't be counterfeit and robbed so the government will get more and more benefits if they start using bitcoin or any other cryptocurrency!

Indonesia legalizes crypto as a commodity asset, it is not an alternative to fiat. You are right that crypto can be traded legally in Indonesia, but it will only be subject to government regulation so not all crypto can be traded legally.

As for the benefits of crypto for the government of course currently through taxes. The government already has rules on value added tax or profits which are directly adjusted by the stock exchange depending on how big the amount being traded is. The percentages stay the same, so that's just one of the benefits governments get from crypto.

I haven't found other benefits that the government gets other than taxes, but there is a possibility that the poverty rate can be reduced when many people have an investment mindset rather than only working for money.

Bitcoin has benefited many youths in my country, which the government seen it as an opportunity to implement tasks giving to local bank for any Bitcoin transactions going through individual account has a specific percentage charge attached, while not yet approved, but sooner or later it may take place and government we start benefits through Bank.

I agree with these, I also think of tax when I think of how would cryptocurrency would be of benefit to the government. In our country, I can see that our government is aware on how people can have some sort of salary or profit when dealing with cryptocurrency in any way like trading. So they are trying to tax the profit that people get in here as they see it as a capital gain. But, these is obviously nearly impossible to enforce since most of the crypto users here don't really follow these taxing rules since it is not that strict in enforcing it.

As we speak, the UK government are, once again (for the third time in living memory), attempting to ban end-to-end encryption (source: https://www.independent.co.uk/tech/uk-online-safety-bill-signal-whatsapp-privacy-encryption-b2324483.html).  They're clearly too short-sighted and reactionary to be capable of recognising the benefits of Bitcoin.

Encryption is merely a branch of mathematics.  Only a total moron would propose banning numbers, yet somehow these people always find their way into positions of power.  Screw governments and their abject stupidity.

So, to answer your question, I'd say it's a mix of "yes, but not enough benefit" and the government being cautious about the possible downsides of Bitcoin.

My opinion about this, the government can use Bitcoin to streamline certain processes, like cross-border transactions, and it can help them save on transaction fees.

But, I think the main issue is that the government might see the potential risks of Bitcoin as outweighing the benefits. You know, like concerns about money laundering, tax evasion, and illicit activities. So, in that sense, they might be focusing more on the potential negative impacts on society rather than the benefits it could bring to them.

Sometimes what we think beneficial to us will not come up the same to the eyes of those official since sometimes they have an interest to protect. Maybe for now they are protecting someones interest like those big financial institutions and avoid to make them lose because of new discovery introduce to their citizens. But for sure in the long run government will find those billions of transactions happened on cryptocurrencies a relevant situations where they can take advantage with and have another means to collect more taxes from people who use it.

In my personal opinion, bitcoin has very complex positive benefits, not only for people who invest in bitcoin, but the government also indirectly gets carried away by these benefits. Even though the benefits that the government gets are not as many as the benefits that bitcoin investors get, still, even though it's a little, it's still a positive benefit from bitcoin. A simple example is that many people are helped financially, because they invest in bitcoin. Indirectly, with the presence of bitcoin in some communities, many economic strata of society have changed for the better. Especially people who buy or get bitcoin prizes, at the time when bitcoin was cheap, today the economic situation is very much different from before, which was a bit less well off, now the economic situation is middle to upper, even rich people, and that's all the result from bitcoins. With so many people being helped financially through bitcoin, the poverty rate in the country is at least somewhat reduced. And I think things like that are very helpful to the government, because indirectly, the poverty rate is reduced, even though reducing or eliminating poverty in a country, that is the right and responsibility of the government.

Related The question of whether there is any benefit to the government from Bitcoin requires a thorough analysis of the potential advantages and disadvantages of the cryptocurrency from the perspective of government policy and regulation. In my opinion there were and for now Bitcoin has brought a wide range of benefits to individuals, businesses and investors, including decentralized transactions, unlimited payments and profit potential. However, when it comes to government, the potential gains are more complex and depend on a variety of factors.

If i am see, one of the major advantages of Bitcoin for governments is its potential to streamline financial transactions and reduce the fees associated with traditional payment methods. The use of Bitcoin can also enable faster and more efficient international money transfers, which can benefit businesses and individuals involved in global commerce.

However, whether the use of cryptocurrencies is recognized or not, it can pose significant challenges to the government, including the potential for increased financial crime, money laundering and tax evasion and The decentralized nature of Bitcoin can make it difficult for governments to regulate, and the volatility in Bitcoin prices can create financial instability and risk for investors and the wider economy.

I hope we arent just thinking about signature campaigns or whatever payments  we receive from the forum, lets try and think beyond this place to see the benefits of btc...for example this is cash without  borders and its available 24/7 without the need of middlemen which makes the cost of owning it to be low unlike fiat which has bank charges, maintainance, etc Also bitcoin has shown to be successful in countries where the local currencies have completely failed and btc has come to the rescue,  i guess we have more benefits  than we can think of.

Also for miners,  they actually help

Well lets look at it this way, someone earns some btc from signature campaign or trading or hodling etc and then when the cashout via an exchange this money does go into the economy to get goods and services and in so  doing ,some of the items purchased attract tax which goes to the government and this is one way our govts benefit from cryprocurrencies.

Regarding Bitcoin in my country, the government has legalized it as a digital asset rather than an alternative FIAT currency. This means that people can only buy Bitcoin for the sole purpose of ownership and cannot use it as cash to purchase goods.

In the context of this legality, the government can benefit from implementing policies and enacting relevant laws. Cooperation is established between the government and the national crypto exchange to facilitate transaction tracking. As a result, anyone who transacts on the national crypto exchange will be subject to a 0.21% tax on the total transaction amount. This is, of course, advantageous for the government, as it provides another source of revenue.

Thus, there are two types of fees that traders must pay when engaging in trading activities: trading fees paid to the exchange and a 0.21% tax paid to the government.

Governments have completely failed, most notably the Chinese government, which views bitcoin as the enemy. I don't remember where I read that news, but the article's content is that Chinese people are still quietly participating in crypto, even remote provinces are still mining crypto, and the government is almost impossible to ban them thoroughly. If you regularly use Twitter, you will see a lot of investors coming from China, even they are the ones who catch the market trends very well. I believe that, sooner or later, every government will have to accept bitcoin to some extent.

Taxes, that's what most governments get from bitcoin. And I think that is also the reason why many governments gradually do not want to ban bitcoin and cryptocurrencies, but instead, they gradually accept it with a series of regulations. They realized they were losing billions of dollars a year from the market and started looking for ways to tax us. Like it or not, regulations and taxes are things we cannot avoid, they are inevitable, the government will never let us go.