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.

Other government don't need to accept Bitcoin as legal tender, they only need to accept Bitcoin as commodity and not ban it. But either Bitcoin become legal tender or commodity, the government will keep add rule in order to prevent their citizens to use Bitcoin that can harm the country.

It's true Bitcoin can be used to avoid paying tax, but it's not as simple as that. Most people will still leave their trace and the government can still find the people who are not have declared their total holdings.

Because there are already governments that accept Bitcoin as legal tender, it's only a matter of time for other countries to follow suit, governments need time to see the benefits of using Bitcoin in their countries because so far the information obtained is not positive but rather the possibility of Bitcoin being used by its citizens to avoid taxes and also other things that can harm the government in terms of income that can be obtained.

If Bitcoin is of any benefit to the government it would be impossible for them to ban it, but because Bitcoin has no benefit whatsoever to the government and instead it is a rival to their financial product therefore the government does not support the adoption of Bitcoin and some countries even ban it. So there is no need to be surprised if the government continues to discredit Bitcoin or other crypto.

Tax is the obvious benefit for the government if they accept Bitcoin regardless it's only accepted as a commodity or a currency, which had been mentioned by above members.

The second benefit is the government can make more money by holding Bitcoin, if they only hold their fiat, their wealth will be decrease due to inflation, Bitcoin could be used to hedging against of inflation.

Apart from tax, bitcoin doesn't give any benefit to the government, if it were in their favor, they would have accepted and allowed people to use it a long time ago. Government is a centralized system, corrupt, greedy and doing evil things while bitcoin is transparent and decentralized.
That's completely against them, so it won't work on them at all.

Governments like us, are not all alike. There are several governments that are in financial difficulty and near default, so bitcoin could work in their favor, such as El Salvador. Thanks to bitcoin, they have revived some sectors such as tourism and thereby helped the country's economy recover and take a new direction. While countries have developed and stable economies, bitcoin will not benefit them, but on the contrary, they see it as a threat to their currency as well as their economy, like China. It depends on how each government views bitcoin as a benefit or a threat.

I actually don't know about this, please correct me if I did something wrong.

In my opinion, with the presence of bitcoin in the world, most people think that btc will harm the government, but in my opinion, btc certainly has advantages for the government, as long as the government has to do something like this:
the government must implement a tax program for people who buy and sell btc on exchanges, so that tax funds will definitely go to the country which will certainly make the country prosperous because there are tax funds that enter the country from buying and selling btc on the EXCHANGE. so that the government will be assisted because of the existence of tax funds to develop the country to be more advanced.

I think there's a considerably long list of direct and indirect benefits that governments can have from Bitcoin. For one, Bitcoin is actually censorship-resistant so governments can enter into all kinds of deals with other governments using Bitcoin and not worry about any sanctions that can hinder them.

Also, Bitcoin is a currency ruled by codes set in stone, not by human rulers who are prone to commit abuses, make weak and whimsical and wrong decisions, entertain biases and prejudices which could all cause the downfall of their own economy and fiat currency. Not to mention that other more powerful economies could actually gang up on a country and cause its currency's value to tank.

Governments using Bitcoin could also implement full transparency on their official financial undertakings so as to minimize, if not totally eradicate, corruption and other questionable spending.

This could actually go on. Citizens using Bitcoin could also actually be beneficial to the government.

If the government finds Bitcoin as an opportunity and as an asset to invest with, then it would have a great benefit to the common good. However every and almost all central government sees it as a risky, clown, and just an internet asset. It is more profound to them that 90% engage with it lose their money so applying the same logic, the government won't dare to risk their funds on Bitcoind when there is 90% of losing it. That simple. Fear precedes the opportunity and later might probably lose it.

And that's propaganda after one another. Hiding it with another project but truthfully risking the fund in cryptocurrency because the government knows the positive and possible high magnitude returns possible. I could either legal or illegal since they are also the ones who announce it to the public. We're all in this matrix ad lies.

If governments were not held in the control of fiat interests, the world could quickly undergo a dramatic paradigm shift. The only reason that bitcoin is not embraced a savior for all countries  is because the world is so tied up into the fiat money system and governments are so heavily indebted to banks. This tie stems from the top all the way to the bottom. It is not easy to escape it and it may very well be the reason that economies must be destroyed before they can be saved...if they can even be saved at this point.

If all those involved in governments woke up one morning and decided to change from fiat tender to bitcoin tender, and converted all assets to Bitcoin...they could probably alleviate their debt in a matter of years...maybe faster. Unfortunately it's not that easy nor do people in charge have any sort of interest to do so due to probable indoctrination, personal prejudice or corruption.

Actually they know Bitcoin has big benefits than other instruments they invest in. But, they guard of attitude and hide it. if government wants, they could build huge Bitcoin mining in save place and energy (use nuclear energy). but because they keep the attitude, they won't do that and even banned it. Or, they do it secretly, and spend it for secret project?, who knows, because we don't have access to audit in what the government did.

Different government offices can be paid with bitcoin. This is available at specific states and the same doesn't gonna benefit them much. During the tax filing depending on the amount being spend the user could file the tax.

Governments need each and every transaction happen through their channel and for that purpose CBDC is introduced and several other things have been done. The change doesn't happen all of the sudden. In the long run we can expect government to get something from the people as tax which requires a big process to be shortened.

Op as the individuals are benefiting from bitcoin, the government is also benefiting. Although the governments that are benefiting from the cryptocurrency are few but some of them are using it secretly. If government is not benefiting from bitcoin, El Salvador. And Central Africa Republic would not adopted bitcoin in their countries as a legal tender. Bitcoin is not for only one sector or section but for all.

what they don't want about this currency is they don't have the full control of it. as it is decentralised, they can't get the whole picture of who owns and how much. this is why they are hesitant to accept this as legal currency. but for sure, they are now understanding other aspects of crypto esp the fees and the duration of transfer when it comes to cross-boarder payments. and besides, they can enjoy anonymous transactions with this currency.

To the traditional government? Mostly no as Bitcoin means decentralisation and government will always be against that so obviously no government would benefit from it. Only way government could benefit from it is when they make their own chain and make sure that everything and everyone is regulated by them. Then it's a perfect scenario for them as they can even track people and they can even make sure that all source of money can be identified. Basically CBDC work on this concept only however obviously it's not decentralised.

When we are talking about the government this is not the building but the people in the elms of affairs, bitcoin benefits them because it indirectly generates a source of income for the government.

There is a government benefit from bitcoin. Look at the exchanges for example in the US, they're making a lot of money and that profit they make is taxable.
So, in short terms, there goes the taxation that's being cut from these exchanges which are sums of money and that go directly to the government. Also, we've seen those bitcoins that have been put into auction, those seized bitcoins and all the profit goes to the government too. Means that there are a lot of forms from bitcoin that the government benefits and also even from us, individuals.

I think it has had been mentioned before around here on the forum that the government of the United States seems to have increasingly became more interested in holding Bitcoin. They have not issued an official statement about it yet. But the movements of the wallets people know are in power of the USA, suggest that for now they are holding a signicant amount.

Usually, they would be supposed to auction those assets which were seized from illicit businesses. One must wonder whether they have changed their approach in these these when the hegemony of the American Dollar is being put into question or not. 

So yes, governments obviously can benefit from Bitcoin and there are already some that are doing just that around the world.

It is because of benefit that the government of my country refuses to acknowledge the use of Bitcoin or cryptocurrency. My country along with some other G20 nations think they have to have control over cryptocurrency as much as they do fait. The problem is, if they hold control and tax the earnings of Bitcoin or cryptocurrency users, what makes it better than the fait system or legal tender?
A decentralized system is supposed to not be controlled or taxed. Although certain requirements make people have access to such systems, it is not a money making scheme for those who mainly seek to get a percentage of what I earn or the return of my investment via cryptocurrencies trades or commerce.
It should benefit the government wherein they intend to undertake huge capital projects within a duration that normal fait wouldn't have the capacity to sponsor, also in cases of national crises or natural disasters, otherwise, it wouldn't be decentralized if government had a say or stake in my portfolio or wallet for no good reason.

The crypto currency trading now allow the government to earn some money from tax.It was huge while you consider the population of your country.If the bitcoin was legalised and taxable one in your country, you are forced to pay 20-30% as the tax to the government.You can think to avoid of taxes to crypto currencies,But they had a check and balance by the kyc.Most of the trusted crypto currency exchanges had mandatory the crypto traders to verify their Kyc to use the exchanges.So finally you are the goat to pay the taxes to the government indirectly.So the government surely earn good money the cryptocurrency.

El Salvador's government saw a benefit in adopting Bitcoin as legal tender, while other countries, such as China, didn't see any benefit in Bitcoin. Quite the opposite, they saw Bitcoin as a threat and consequently banned it. Depending the country Bitcoin will be seen in a positive or negative way. I think it has a lot to do with the ideologies of the people in front of the government and the economical situation faced by them nationally, regionally and globally.

Countries in bad financial conditions and which lack dominance on the global scenario tend to adopt a friendly stance towards BTC, while strong, powerful and influent countries tend to disdain and obfuscate Bitcoin.

Bitcoin is like the friend everyone seeks during the hard times, but who is ignored during the good times.

Bitcoin as a new emerging industry can give benifit to the government.  One of which is taxation.  The government can earn profit through taxation to the start-up company.  Start-up company can give employement to its citizen which then pay taxes every wage earned to the government.


True that the government is a centralized system while Bitcoin is decentralized, it does not stop the government from profiting on the Bitcoin industry.  Remember, for a company to be established, they need licenses to the government, these company licensed company then earn from Bitcoin and have to declare their performance to the government, if there is profit, then they will need to give tax for it thus, the government earned from decentralized Bitcoin Industry through this companies.  Even though Bitcoin is decentralized, companies that take advantage of it connects it to the centralized government.

That's exactly what I think also, Bitcoin is decentralized and did not involve any third party while doing Bitcoin transactions, and while sending out your Bitcoin, your identity is hidden, I don't think the government will benefit from the system unless people that use Centralize exchanges.


Government is always after its own benefit which is why they are finding it difficult to accept Bitcoin fully because they want to impose a tax, that is why they are very serious to put a very high tax on some companies that are using Bitcoin and cryptocurrency so that they can benefit from them.
I am sure government will not fully succeed in banning Bitcoin because so many people globally have embraced Bitcoin and will keep spreading the good news about Bitcoin.

The government is ignoring bitcoin for various reasons, the most important of which is that they know bitcoin is a very easy way for transactions, so they don't want to accept it because they know that if they allow bitcoin in their state or country, their banks will fail, and the revenue they receive from banks will cease or decrease So, if the government accepts bitcoin, it will eliminate many issues in society such as fraud and other issues. Then it will create a mechanism for the government to receive funds from big successful investors, since I believe they will want to know the successful investors in each country where bitcoin is accepted. They will still like to introduce tax collections for everyone who using bitcoin.

Only one word I can think of is 'tax'. It benefits the government, and in a very huge way. While it may be counter-intuitive to be critical of bitcoin and other crypto if you can always collect tax from it, it actually lays the foundation for a lot of things to be established later along the way. It builds confidence on potential investors that can put their money into bitcoin and crypto-related things, which means more money for the government. It will take time, and a lot of back and forth between the regulators and pro-bitcoin, but things will eventually pan out.

I believe that the government could benefit from cryptocurrencies in some ways. However, if they start to track people's transactions and tax them, they will likely get some benefits from Bitcoin. The problem, as @Dave mentioned, is that people do not want to be tracked since the fundamental idea of Bitcoin is to allow people to transact freely without the need for a third party.

In fact, that's what makes it unique, so people feel uneasy about the idea of government tracking.

Nonetheless, if proper regulations are in place, cryptocurrencies can provide benefits to both individuals and governments imo.

Either they should legalize Bitcoin and let people do whatever they want, or they should come up with a good proposition that allows people to use Bitcoin without being tracked but also benefits the government in some way. I think striking a balance between privacy and regulation is really important for the adoption and success of bitcoin and other crypto aswell.

You can't say that they won't benefit from it and then listing cross-border transaction and taxation as benefits, that's contradictory, one benefit that I can think of is if the government gets in the market too, doesn't China have a bitcoin too? So I think there's some degree that a government might benefit from it.

There's little benefit for the government to be very honest. Apart from cross border transactions and tax collection from the citizens, there's literally no benefit for the government from crypto adoption.

However, the bitcoin is not getting governments favor due to the fact that they do not control it and bitcoin is pseudo anonymous in nature. So it's highly unlikely that bitcoin and other cryptocurrencies will become greatly adopted and appreciated by any government.

The main benefit to the government itself is as a store of value. Governments hold lots of Gold as a store of value. The US Treasury report from a couple years ago says the US Govt and Federal Reserve have about $500 billion of Gold. And obviously Bitcoin is replacing Gold as the worlds store of value so it would make a lot of sense for govts to convert at least some of their gold reserves into Bitcoin.

If nations were smart they would covert even just like 10% of their Gold reserves into Bitcoin. So for the US that'd mean about $50 billion of Bitcoin. Which would obviously within a few years (if they bought today) be worth more than their entire Gold reserves. Of course it will likely be many years before the govt gets smart enough on Bitcoin to actually do this so they will get much less benefit from the growth of Bitcoin.




Of course all govts get the benefit of the taxes from trading of Bitcoin and other cryptos. So it is in the interest of the govt to let the industry grow and flourish. The only reason not to allow this is if the govt is so authoritarian (like China) that they fear the freedom Bitcoin gives to people more than the benefit of higher tax income. And a govt that wants the most freedom for its people would also see the benefit to the country at least, not the govt itself, of allowing people to use a monetary technology that gives so much freedom as Bitcoin does.

Obviously El Salvador which has made bitcoin legal tender and therefore doesn't collect taxes on it doesn't get the increased tax benefit. But they do get the benefit of Bitcoin's long term growth in the bitcoin the govt has bought and will continue to buy for national reserves and the bitcoin they are mining. They also get the benefit of increased tourism because by being the first nation totally accepted of Bitcoin lots of bitcoiners now travel there. And over time, as the people become educated on Bitcoin and Bitcoin usage increases in the country, they get the benefit of moving away from their reliance on the USD and the people getting much more of their money from remittances since Bitcoin is far cheaper to send than what the companies that do remittances charge. I think it was Western Union themselves who said if all El Salvadorian remittances went through Bitcoin the company would lose like $400 million a year or something, and so if that was all done through the LN rather than on-chain so that the fees are near zero that would mean $400 million more each year for the El Salvadorians and so roughly that much for their economy.

The downside to govts is that they are worried about less use of their fiat because people will prefer Bitcoin. Controlling the national currency is a good bit of the govts power so that is a very real fear for the govt, that their power will decrease as Bitcoin's influence and usage increases.


Overall I'd say its a larger benefit to the govt and the people if the govt allows and promotes Bitcoin. They will over time lose some of their power they get through controlling the currency, but the benefits for the people and therefore the country will be large, and if they hold a lot of Bitcoin in reserve then the benefits for the govts reserve holdings will be very large.

Bitcoin will increase people's trust in their government, especially in public office holders in nations with high corruption indices.
particularly those who are in charge of carrying out a major project. Since bitcoin transactions are recorded on a public ledger, it will be simple for citizens to review the ledger and determine whether funds allocated to a project or budgeted for that purpose were actually spent that way or whether they were diverted by a government official for personal gain. These public office holders will be unable to forge financial transactions. Corruption will reduce, and openness, transparency, accountability, and fairness will all be encouraged.

I think, blockchain can allow a safe and ensure check on whether a person is field as eligible to have particular jobs within the government or not. In summation, the details saved in the blockchain can be used by users to authenticate and prove the capability of any agent with paperwork available to them without answering on third-party companies

 I think for governments to realize the possible benefits of blockchain, they will need to prove,
1) prove of ownership and transfer before any other thing.

As far as I know, the government is a completely centralized system, and their power increases as their system become more centralized. While bitcoin is decentralized, it cannot benefit a centralized government system. So it's not too surprising that they don't accept it, but so far, banning it has been largely unsuccessful, and they are turning to another solution which is to introduce regulations for bitcoin. And their goal is to tax, not they will promote decentralization into their centralized system.

When the government can receive tax from using bitcoin, the government will be benefited. Moreover, in this moment there will be no benefit to the government as most of the governments have not legalized Bitcoin yet. Governments will start getting the benefits when various organizations start using Bitcoin after the validation. If governments take a positive view on Bitcoin, they can benefit from using Bitcoin very soon. We all know the country of El Salvador. Government of that country taking various new steps regarding Bitcoin holding and its use case. After a certain period of time, that country will go to earn a large revenue through the use of Bitcoin.

There's a lot of factors the benefit of bitcoin to the government, the market of Bitcoin could also affect the economic growth of a country same thing with the Bitcoin, if the economic situation of a country drastically fall, it might affect Bitcoin's worth. Plus Bitcoin's blockchain technology is much convenient to have transaction which could be benefit to it's user and customers. And the fact that Bitcoin is a decentralized system where government can't put taxes on any transactions in crypto if that's possible for them to make it happen then it would benefit them huge. US are already acknowledging Bitcoin so it might happen. Fraud and corruption may reduce as people could control their authority to their funds unlike in a centralized system.

Yes its useful in a sense that they could confiscate illegal bitcoin and take over the asset. We all knew its valuable and its likely to be used by government for their funding.

I believe they are just using politics to try to find and control everything. If government can find a way to tax any crypto then they will definitely benefited from it. Its sucks that they criticize so much about crypto and bitcoin but in terms of tax they are onto it.

Though bitcoin has got nothing to do with the bitcoin in border sense but it has many applications to it. I mean government can easily use bitcoin to overcome the inflation situation such as the current one. Many of us think inflation is due to covid only or wat at one corner of the world etc etc. However, I think it’s because of the westerners printing money out of thin air and without any final calculations to it. If this burden could be shifted to bitcoin and we inject it in main stream then it can easily get huge valuation and peeps can divide their assets, investments between the two. It won’t do much but we will have two options to play within ecosystem of crypto and fiat. I think beyond this there are application such as making bitcoin as main stream currency as well. One can have a currency alongside fiat in the banks to have easier overseas trade and what not. Obviously to make this happen one will need to put efforts in infra. But it’s doable.

Governments can benefit from Bitcoin. The first benefit that governments will get from Bitcoin is tax revenue. The government can get these benefits with many investors involved.
The government can apply a percent (%) tax on each transaction from an investor's activity on the exchange where the transaction is made.

For example, where I live now, which has implemented tax rates on several exchanges that are registered with communities that are under the auspices of the government, which are regulated by law.

The second benefit is probably the Bitcoin system.
So far, we know that the government banking system still cannot beat blockchain technology.

I believe it's been discovered in the past that some governments use Bitcoin for their own purposes in cases where they want to be discreet. Then there's also El Salvador, and I suppose it's easily true to say that Bitcoin is beneficial to the government there. Bitcoin is also beneficial to the governments of the countries where Bitcoin is reasonably regulated, so people feel okay with paying taxes. So I do think that those in power of various countries can also benefit from Bitcoin and it's not merely beneficial to non-governmental agents. But some may not support it because of focusing on a risk, a risk of showing people that they don't need fiat, monetary policies, central banks etc.

BTC does not benefit the Government directly but the technology behind it does. They indirectly benefit from taxes as mentioned by Dave and also on the penalties they impose on different companies involved in crypto. I don't know how many they have collected from settlements so far but it''s probably in millions. If you add those seized BTCs then the figure will be a lot higher.

A government can benefit thru the profit of course if they have a BTC stash.  The Kingdom of Bhutan was in the news that they were stashing BTC and ETH according to Forbes. They however put it on Blockfi and Celsius. : facepalm :

BTC will be useful to countries that don't have their own currency like El Salvador. They were using USD and BTC is an alternative to them and so they are mining. I'm not sure how true the news was but recently, Russia was said to be mining BTC.

Anything that allows the movement of money benefits the government so long as they can track it and tax it.
The problem is most people do not want to be tracked and taxed, so you wind up in the loop of that.

Slowly, there is more acceptance in state & local governments https://bitcointalksearch.org/topic/2023-01-29-new-york-state-takes-a-step-toward-cryptocurrency-adoption-5437485 but like everything else it's a process and will take time.

-Dave

Bitcoin has benefits to us, it is why we speak positive about it and support it because if bitcoin was in no way of benefit to us, supporting it will be difficult maybe like the government. Maybe we have all been selfish and just been discussing the benefits that bitcoins have offered us and not how it has also benefitted the government too. Is the government a part of the benefit list of bitcoins, is there any benefit that bitcoin offers to the government? If your answer is "no benefit", do you think that it could be a reason why the government do not support bitcoin? If your answer is "yes, but not enough benefit", do you think they are just ignoring the benefits to them and focusing more on the benefits to the people which is making them angry?