Topic: Main reason government won't fully accept bitcoin (Read 632 times)

It is true that politicians don't have time to learn bitcoin, but they have advisors, leading experts in economics, so they don't know bitcoin is strange. As a politician, you need to embrace all the innovations of the world if you want your country to thrive or not be called a stupid politician. So I believe they all know bitcoin very well, and that's why they don't accept them.

I think one of the major reasons why government have yet to accept bitcoin is due to untraceable transactions  ,

Governments wants to be able to trace or track  how it's citizens uses money so as to intersect illegal transactions like purchasing of weapons,  funding terrorism / human trafficking,  purchasing of illegal drugs etc,

Bitcoin is too secure and gives more right to bitcoiners than to the government  , so I think the government cannot afford to lose control of financial security  survelance ,

This written according to my perception and it's open for debate too,  thanks

The government of any country would dream of having a “loyal” and controlled populace and would put in place policies and laws that would aim to do just that. The government of any country would love to have the finances and the cash flow of its citizens in check and somewhat controlled.

 Bitcoin has come to out an end to all that and that’s why most governments of various countries perceives bitcoin as a threat to the control they enjoy with the fiat system of payment.
Bitcoin cannot be killed but the government could very well dole out policies that could harm the usage of bitcoin and that includes a ban on all transactions.

The topic should be "Main reason why the government won't fully accept bitcoin yet". There should be a yet because knowing how the future can turn out, things can change, so the decisions and opinions of the people presently the governments is bound to be under constant change as the people there change. The government may fully accept bitcoins in the future, their present stance about it will not always remain.

They can ban bitcoin and restrict us from using it, but they can't completely destroy it because bitcoin is decentralized and popular all over the world. The government doesn't accept bitcoin because they can't control it and they don't get any benefit if they accept it. Bitcoin frees us, and that's what the government hates the most...There are too many reasons for them to reject bitcoin.

The characteristics of Bitcoin are not conducive to the government. The government's expenditure or income on it is clear, open and transparent, and they cannot hide their transactions, so the government will fear Bitcoin.

The reason why Bitcoin is not accepted by the government is first of all because Bitcoin is not under the supervision of the government, the government cannot do things as it pleases, the government cannot ban Bitcoin, and Bitcoin will not be killed.

And also Bitcoin transactions are transparent. So let us say the government uses Bitcoin and convert all people's money into it, we can clearly see each transactions. And ofcourse, we ordinary people always looking at the government funds by looking for the transactions of that address they using so they can't hide the truth to us, they can't manipulate us. So I think transparency is the main reason why they afraid of Bitcoin.

Governments know well about cryptocurrencies and they also know that money laundering and illegal activities are happening good through fiat. But they keep on pointing cryptocurrency as the cause for money laundering and illegal activities. In most of the third world countries the politicians itself doesn't know about cryptocurrencies, so they stand against its usage.

You sure have a good point though, coming from a country where the government is so corrupt to the extent that they steal even funds belonging to displaced persons. Orphanages, funds kept to cater for the less privileged people In the society, I can really understand when you state this reason as one of the reasons why they won't allow the use of bitcoin in the society..
If bitcoin and made a legal tender and the masses move to transacting in bitcoin, the government will automatically lose the grip they have in their citizens through fiat currency , power will be taken away from them and passed back to the masses which is where it belonged to in the first place..
So, bitcoin is indeed, a threat to most of the government of the world, but the good news is that, even at that, they still can not stop bitcoin.

I think the situation of Bitcoin acceptance is strongly correlated to the ability of a government to control it, so this situation could change over the time depending on the power a country has over Bitcoin. For example, Bitcoin was widely accepted in China a few years ago, and when they felt that they weren't able to control it, they banned it, while the companies in USA were buying silently, and now USA seems to be making benefits from Bitcoin either by hosting miners or taxing traders and exchanges.
Long story short, Bitcoin won't be accepted all over the word at the same time, because it could damage the economy of a country to achieve benefits for another country as it's uncontrolable, and governments will always look at it as a tool to achieve economical benefits.

I believe the government is against bitcoin because they can not regulate it to their own aim so as to satisfy their ego. I believe Satoshi saw all these before embarking on this innovation and it was something the government can not comprehend as it is against their own aim but it is too late for them to interrupt or interfare with the already developed technology. The inception of bitcoin took the government unawares and made lots of millionaires today and still counting. The issues of tax evasion is what they are also accusing bitcoin technology of that has made government to loose tax as a result of holders bypassing tax payment which they steal from without any account from them how they spent the tax paid by the masses.

It is all just excuses, and they are not just blaming bitcoin for sponsoring terrorism and money laundering, they are blaming bitcoin for global warming as well. All of these are crap excuses to force us to give up bitcoin, but they have failed consistently, bitcoin is still growing and becoming more popular.

It doesn't matter, Bitcoin was made to work with or without their support. Luckily even a couple of countries adopted it officially as legal tender and many more as some sort of asset value. It is a rotund worldwide success. Only about 16 fools banned it, and its probably used in those countries anyway since they can't stop it, just make it more cumbersome forcing people underground. Not unlike a socialist gov prohibiting foreign currency detonating hyperinflation after their infinite "printing" which forced everyone break their stupid "law"...

The rest is coming, more countries will adopt it as legal tender and eventually critical mass will be reached. We don't need no fiat or altcoins. A few politicians or small financial elites should never have the power to decide devaluation again. It is the end of monetarist economics, enter Austrian school of economy, no more trash money designed to lose purchase power if you save it.

Bitcoin does not hurt the country's economy, but it will hurt their economy and power, if the government allows people to use bitcoin, then they will not be able to collect taxes or control us closely. The government's economy is mainly from taxing us, so if they accept bitcoin widely, it's like they're putting themselves at a dead end. After all, personal interest comes first, the government does not accept bitcoin because bitcoin gives us a lot of benefits, but for the government, it is a bad thing.

Yes, they won't be able to tax BTC, BTC can't be regulated and a such it will be used for money laundering and other  criminal activities, the government won't be able to know how much comes in and goes out of your account, most criminals use BTC and and criminal financial activities can't be traced by the government with the use of BTC, BTC can also bypass capital due to its constant rise and fall of the value of BTC

The government is fighting also for its control position which is normal. If they don't have control like the BTC, it's normally rejected. It's just us who will be using BTC.

They couldn't even tax BTC especially if it's outside the centralized platforms and anonymous wallet. It's really worrisome for governments when everyone suddenly decides to get out of platforms they can choke. El Salvador is unique because president Bukele is fighting a different war which is thier independence from debt and USD.

Governments will not fully accept bitcoin because it is outside of government control bitcoin is decentralized so the government can't manage it at will. This is a surprise exchange currency, which has no regulatory body. It does not work with the intervention of the government or the central bank the computer network that operates the digital cash system. Digital ownership of this currency is exchanged online in developed countries around the world bitcoin money is fully guaranteed in privacy.

No one can control cryptocurrency, so every country's government is afraid to fully accept it because if they fully accept it, it will become very easy to launder money through it. Because through it billions of dollers can be transferred completely anonymously. So if thousands of crores of dollers are smuggled through it then the government will not get any trace. Here only wallets can be tracked but no one's personal documents can be found.  Here a money launderer will remain completely hidden

There are many things and also dark secrets that are needed to be considered regarding why governments do not accept Bitcoin and crypto and these are described below as follows
1. ILLLETRATE  people in Law and In Courts
2. Governments ban crypto because they think that Bitcoin might dethrone their fiat crypto.
3. They also think that Bitcoin is a source of Black money laundering and that's the main reason behind this.

In some cases they are right and in some cases they are wrong too. In future this might be settled too.

Bitcoin being decentralized make it easier for the government to steal money is just for them to create various wallets and start sending the coins there. But there is one main reason why they don't like it and is simply because they can't control it

As long as it doesn't affect the economy too much, the government will not touch this for a while but if there's an illegal activity with the use of the cryptocurrency or the bitcoin itself I guess there's a time they make an action like a ban of using of it they don't have full control with the bitcoin because we know its a decentralized but of course still they have the country to prohibit. using of it, in some point currently, they see bitcoin as the future like mode of payment and etc that helps for the economy.

This statement reflects a common viewpoint that some people have about governments and their motivations. It is important to note that governments and their actions are complex and can be influenced by a multitude of factors, including political, economic, and social pressures. Additionally, opinions about the use and acceptance of cryptocurrencies, such as Bitcoin, can vary greatly among government officials and the public. It is not accurate to make blanket statements about the motivations of all governments or individuals in regards to a specific technology or currency.

You are right, but you forgot one thing the government is also human, they also have greed and put their own interests first, if they accept bitcoin, it is like shooting themselves in the foot. But it doesn't matter if the government accepts bitcoins or not; I live in a country where bitcoins are not accepted, and I still use bitcoins without any problem. There are always ways to use bitcoin even if they ban them; bitcoin is unstoppable.

Government is famous for imposing tax and to rule the way it likes. But thanks to Bitcoins for which, no people or government can know how many Bitcoins I have or I am holding. Due to the decentralised nature of the coin, only I will be able to know how many Bitcoins I have in my wallet. Government won’t accept the entities which they can control or manage, therefore in many countries government has banned the coins. But who cares, thanks to P2P trading, we can sell or buy the coins without the interference of the government.

The most common reason why governments won't adopt bitcoin is because bitcoin is out of control. You cannot expect every bitcoin user to obey the rules that are made, bitcoin is not like a bank in general where every bank account is controlled by central authority. Someone can protect his financial privacy with bitcoin, it can be used for illegal things and many of other things without control, and those are some of the main reasons so far that governments are afraid.

I'm not sure about the other things that hurt the country's economy, screw it up or something like that. It is contrived excuse for the adoption of bitcoin to be discouraged, while bitcoin has helped the economic growth of users which in turn has reduced the number of poverty among its users.

Yes exactly, no government will let go the control of the finance of its country, and bitcoin will be pose a major threat to that,  I think even some countries ban bitcoin just Because maybe they are seeing the threats , tho they can't say they don't accept it but we all know that accepting bitcoin fully is not something any government will come out to do ,

Accepting bitcoin fully will include paying their workers in bitcoin and not the country's currency which may reduce the value of the currency or even lead to abandonment of the currency.

People be saying that governments hate bitcoin due to it being used as a money laundering or tax evasion tool. Do note that those kinds of acts require a FIAT currency in the first hand, which is trackable. Heck, even most cryptocurrencies are also indeed trackable if it being used improperly.

Why does bitcoin being blamed, where in fact, FIAT is the oldest tool that is being used to launder money and tax evasion? That is absurd. Even today, it is still being used. So one of the root causes is simple, it is beyond their monetary control.

All of the answers are correct, and the main one is because governments don't fully accept bitcoins because they can't control them, and banning bitcoins or cryptos is possible but it's not a permanent solution.

People need to understand that why the actual invention of bitcoin crypto happened was because of all the financial crises in 2008, but necessity is the mother of invention.
So the government shouldn't ban any cryptocurrency for any reason, and maybe there should be regulations around it, because technology is for social gain, not to ban or destroy it.

They already trying to make some research or prepared tax here and we are unable to bear it. The OP is very true that they need some bribe for long term accepting Bitcoin, so this will never happen.
It is hard to trace users of Bitcoinan and they will lose on Income tax too because Bitoin is untraceable.

I really agree with your review because the government cannot track transactions and cannot take control, another reason is because the government is afraid of being competed with a more efficient and effective currency, the government also reasons that they are afraid that crypto currency is used for actions that violate the law and money laundering, perhaps for reasons like that the government is still not fully accepting bitcoins.

I think they will adopt bitcoin right after they will find a way to tax it. Yeah, you are right, they hate it because they can't trace it and get money from it. The fact that bitcoin is called freedom money should already implement that officials will hate it.

Actually, is this, Bitcoin as transparent yet privacy-friendly system undermines two of the more complex and vital activities of any government, taxing its citizens and keeping secret some of their expenditure (for both legitimate and no-so-legitimate reasons). It  would be actually good for civilian society, it will increase accountability and give citizens a solid bargain chip against government, as people will make public more of their economic activities (and pay more taxes) the more they are satisfied with the government


This one is actually a mixed bag. The lose of control may look bad for a specific government, but when you take into account that every other government will lose control too it may become the "less bad" international arrangement, as nobody will have enough control over international finances to use it as a weapon, it may even incentivize economically weak states to accept Bitcoin. Overall it may be a main reason for the likes of USA or China, since they use international commerce and finaces as political tools, but will be a secondary issue for small states

And a small extra:

It may look as a dire view, but all (non totalitarian) western political theory since the end of Napoleonic wars acknowledge both the state and its officials as selfish agents whit their own goals different to those of civilian society, but that is a theme for other boards

You are right, mate. Most of the government officials and ministers who are just talking against Bitcoin and attacking it openly are just saying it because they just want to say it; those are just mere criticism. 
Early before the crypto restrictions on Nigerians buying from crypto firms via direct deposit of NGN from their cards, the total trading number of NGN/BTC was about 2. Something like billions of naira—I don't know the exact amount—will you tell me that all those funds and buy orders over there are just regular Nigerians who want to invest in crypto? They all know what they are doing. 
 
Those top rich politicians are already and will always be using Bitcoin and crypto to launder money. 
 
Binance being one of the largest exchange always record Nigeria as one of the top Africa countries with highest trading volume both on Spot and P2P trading, are all those trades just you and I.. 
 
Most government in general are against Bitcoin, but there representative are holder's of it secret.

Governments, as we all know, absolutely despise permitting anything that is beyond their control. Additionally, governments dislike legalizing money that wasn't made by them. Officially, there won't be two different currencies, which is why the government has consistently opposed Bitcoin. Despite this, several governments have begun adopting Bitcoin. However, a significant percentage continues to oppose bitcoin. Government cannot stop Bitcoin because of its decentralized nature. So worry nothing; let them fight with us.

Maybe the government is the worst choice for bitcoin? Have you ever thought about it this way?
Bitcoin was made to be decentralized and ownership of bitcoin by the government would took a large part of it from the market for free. The government can print as much money as it wants and use it to buy bitcoin to take it out of the markets and keep it from being circulated and exchanged. No bitcoin in circulation would mean no more problems for the governments who feel threatened by it. It's easier than trying to enforce a ban.

Besides being greedy or selfish there are other things we need to consider when we talk about government and how they act. Government is not a body but it is a whole system that is incorporated as one. Before the government will sign any law into the constitution or implement any policy they would need to get their legal part of the government to do their work and then transferred to the it's a executive and as well as legislature and these are processes that would smoothly undergo before adopting a new policy.
Meanwhile they are not sure about the future of Bitcoin or whether it will turn to be something harmful so I think that is why they are skeptical of accepting Bitcoin in this early stage

There are a lot of reasons why some governments hate Bitcoin and they don't want it to accept or legalize. It is challenging for them to use cryptocurrencies as a reliable store of value, which is a vital function of money, for reasons including the volatility of their prices.
Some are also hate Bitcoin because they are corrupts, they can't do anymore some of their illegal things once they start to use Bitcoin.

They can't control bitcoin and of course they scare if crypto gonna disrupt their financial system. But after we see el Salvador we pretty much see if the bitcoin can work with our fiat right. I would prefer country that have tax over crypto than banning it 

Well, this is partly true.
Another aspect is, that generally most parties / people are afraid of things
- they cannot control
- they don't understand
- that mean change of the exisiting system
- threaten their current status quo

Often this leads to decision making that is based on fear and a lack of understanding for the possibilities and positive change the "new thing" can bring along.
This also applies to Bitcoin.

Also they don't want decentralization.

Centralization equals power and decentralization equals effort put into giving power to the people while the governments have worked for centuries to take power from the people. Accepting bitcoin as a means of payment is OK to them as long as the main currency remains fiat money. Leaving fiat money for bitcoin is impossible for them because it would mean giving both power ant the economy into the hands of someone else, this anonymous Satoshi, or anonymous whale who according to them controls bitcoin.

The Texas government endorses bitcoin adoption in an 84-page report. It recommends Texas buy bitcoin, pass self-custody protections, tax breaks for mining, and include bitcoin education in schools.
Source: https://t.co/JQOtDMKBp4

Your statement is too exaggerated.
There are still many good people who have careers in government and are fighting earnestly for the welfare of their people.
Bitcoin is a new technology that is believed to bring better changes in human life, but Bitcoin is very extreme.
Like other new technologies, it must have pros and cons. It takes a lot of time to change old opinions.

Lack of controversy over the citizens financial life is one of the major problem which is making governments if various country don't want to accept bitcoin and this is because of bitcoin decentralization. Looking at the way things are going I feel that the government is manipulating it's citizens mindset away from bitcoin which uses decentralized system, by creating their own CBDC which is centralized for the citizens to feel that all cryptocurrency are the same. Government can banned bitcoin now but I know that in the next twenty years from now they will have limited power on bitcoin acceptance.

It’s all about control because with bitcoin they have no control. Governments want to control what we buy, what we do, our finances. With bitcoin they have very little control. Whatever the government want you to do, you should do the opposite. They don’t care about us, they want us to be poor, go to work & pay our taxes.

The $ is the world reserve currency, it’s a massive ponzi, an over inflated house of cards & it’ll all come crashing dowj. Cracks are already beginning to show with their mindless money printing.

Buy bitcoin.

We must comply with every government regulation because the government is in control of the fiat that we have. But when we use bitcoin and it's decentralized, the government won't be able to regulate it. This is what the government is afraid of, they can't regulate people who are starting to switch to decentralized technology. Therefore the government provides strict rules on regulations Accepting Bitcoin or not. Even the implementation of the tax targeting centralized exchanges is not specific to each bitcoin holder because the government only has data from centralized exchanges.

They lack the power to control it. Why do you think China kicked off miners? It was the miners were challenging their authority or better still, it was as if they lost their they authority. They power to control money and invariably, control the people. One interesting thing to note with all of this happenings is that the price of bitcoin will only be affected for some few weeks and before you know it, it is moving towards its next ATH. No government can stop.

Government cannot task Bitcoin holders because they can't access the decentralized database, even if they tried.
They also cannot impede on the use and access to the exchange platform too, because anyone with a smart phone can login and trade in a second notice.

Whether the governments of some countries accept Bitcoin or not, Bitcoin will still be Bitcoin. It might not particularly be all of them, but most of these government officials, some of which criticize Bitcoin publicly, are indoors funding their portfolios with Bitcoin; some are loundering money and investing into Bitcoin without anyone knowing, and that also becomes their fear that, due to the decentralization of Bitcoin, they can't benefit much since it is not something that can be regulated, they fear that others may as well use it to lounder money. Just my opinion.
 
Speaking about Nigeria, where the use of cryptocurrency is not fully accepted due to the ban placed by the CBN, believe me, you will be amazed if you check the Bitcoin/NGN P2P option in Binance. you will relized that various individual wants to buy a huge sum of Bitcoin to Naira or either they are selling. Even if you check the USDT/NGN trade, you will see individuals that are selling or buying millions of dollars in Nigerian currency. I am not convinced that all these traders are just private individuals; some are government officials. I might be wrong though, but that's just what I think.
 
OP, from your topic and emphasis, I think you're just classifying the government as one, whereas every country has its own government that has a different perspective on bitcoin. Despite the fact that the government of some countries does not allow the use of Bitcoin, there are still countries whose governments permit the free use of cryptocurrency.
https://101blockchains.com/cryptocurrency-legal-countries-list/
https://www.thestreet.com/crypto/.amp/bitcoin/politicians-from-these-countries-have-called-for-bitcoin-adoption
 
P2P Buy/Sell oder on Bitcoin/NGN and USDT/NGN: a lot of big deals going on there.

What you say, we all know well. Honestly, we can't blame them either because I believe that if you or I were the government, we wouldn't be either. Government is also human, so they will be greedy and selfish like us, we cant expect them to accept bitcoin while it will affect their power.
It's like we hate fiat money because fiat only makes us lose our freedom, worse every time fiat depreciates, but that's good for the government. But sadly, we live under their control, so there is nothing we can do. 

yeah like everyone said. that the main reason is because the decentralized system makes the government unable to take full control. because after all government will always like something that is centralized. so they can stay in control.

and maybe another reason the government has quite a hard time in regulating taxes for its people who have a lot of wealth assets in crypto and bitcoin. But luckily in my country it seems the government is more open and supportive with cryptocurrencies. even though it is not legalized as legal tender. However, crypto-related education has begun to be carried out a lot. and the provision of crypto tax rates is not too high in our country.

Probably haha
We even cannot guarantee that the government actually also invests in Bitcoin or not. They may say they are against Bitcoin, but who will guarantee that they are not investing in Bitcoin to hide their money? 
Bitcoin will not allow them to control and regulate, that is why it is also about the power of control. They may also not be able to take any advantages or taxes from people who are having assets in Bitcoin. They always spread that Bitcoin has very big potential as a means of money laundering, but in fact, they don't care about it because most of them may also have been doing money laundering in various ways.

Transparency is their main issue, they can't hand such technology because they are too corrupt but of course we should also acknowledge the work of other country and applaud them by fully accepting Bitcoin as a legal tender and make this more legal, that's the proof that other government really concern with their people as they allow them to choose and give freedom. Bitcoin will be better, other government should start learning more about this so they can know if this can be a big help to many or just a burden.

A very common issue that we do have and the main reason on why we cant be fully adopted and recognize because it cant be easily be regulated on most places because government does really hate on something which is decentralized.We've seen lots of issues and complaints or reasoning which trying to bar down Bitcoin or do make out some false advertising or media but still ending up on failing because the crypto
community does know and also for those who do tend to learn up.

They might able to spread up false information about Bitcoin or crypto but once the truth been uncovered then this is where recognition and adoption
do gets stronger.

I believe most governments won't fully adopt BTC and there is no point discussing it. BTC was not created for all the governments in the world to accept it, that wouldn't happen and there are many reasons why it wouldn't. BTC is a second choice to government controlled fiat currencies, i don't believe they really should be interested in adopting this second currency that they do not have any power over.

The governments in power do not really need BTC. I.E If a big nation adopts BTC, they are helping to grow the BTC network and also to make things easier for their citizens that want to use BTC, but this big nation would not gain too much from it, they would even lose some of their financial control over their people. Do not wait for your government to adopt BTC before you spend it, you can look for merchants around you and online and spend your BTC, P2p trades of BTC for goods also happens over the internet and on this forum too.

You are right, the main reason the governments are not accepting bitcoin is the decentralization of bitcoin and due to the decentralization of bitcoin governments usually stand against bitcoin or they want to take control over it, because being decentralized means they won't be able to take control over it or they won't be able to monitor anything as they want. That's why they mostly spread bad words agist bitcoin and they want people to even avoid investing in bitcoin and try investing in stocks where the governments can get more benefits from it.

This decentralization of a thing is what has been making the government have a though time with bitcoin since it a no tolerance to their effect or role on the entire bitcoin network, they cannot adoption or support a system raised against their own interest and central authorities, this makes it a thing of much concern on them as the bitcoin network progresses so is their roles in financial economy decreasing.

I think it creates an equality and that's why it's so important. Look at fiverr and even though it's not five dollars anymore and it costs at least 100 dollars for anything, you will not find many Americans or British people there, it will be from nations that have a lower level of economy, and people from those nations work in fiverr to make that money.

I personally believe that crypto made this into a global thing, people all around the world found cheaper workers, and workers ended up finding more money and we all got together and switched the whole business world into its feet. They were the ones who produced things in China and sold it for American prices, so now people find those workers individually as well.

Governments run ponzi schemes through their national currencies which are heavily manipulated by the central banks. If they adopt bitcoin or a strong stable currency, like dollar, they won't be able to continue their populist welfare programs which distribute "free" money to the poor class, while raising their own wages and increasing the number of useless jobs' spots in the state for their friends.

Actually, governments don't want to fix the economy for real, because it's seen as an unpopular measure in the eyes of the masses. So they prefer to play with "shitcurrencies".

I don't think there is a direct answer to this question, even from other countries beside the western world, I know the response will be different because of differences in opinion and views.
Some will say, btc is not secure because of it's anonymity so it will be difficult for the government to track down illegal transactions such as tax evasion, money Laundering, terrorist financing.
They will always try to come up with reasons why they can't adopt btc

Yes dear agreed on 1 point the world outside is too ruthless and selfish. It always teaches you a lesson. But i think you need some modifications in your theory of why governments don't accept BTC or Bitcoin adoption theory. My dear fellow the only reason that All governments are not going to accept Bitcoin is just the nature of opposing or difference in point of view. That's it... Some are greedy some, are selfish and some are scared.

To be fair, most people involved in the government aren't able to print money either. However, they're currently getting paid in fiat, and convincing that another currency which they currently don't get paid in, is better will be hard. Especially, when these types of people generally don't care too much about money, since they're earning more than the average person will be able to comprehend. Obviously, they care about money, but they don't care about a completely different approach to money, because they're already successful with the current money system.

Generally, Bitcoin is adopted by the less fortunate. Obviously, this isn't the case for everyone there are successful people involved in Bitcoin, but they probably aren't being funded by fiat, the way that government officials would be. Plus, I do think there's genuine reasons why a government wouldn't want to adopt Bitcoin, especially in it's current state. I probably wouldn't even recommend adopting Bitcoin completely.

Op's points are very generic. Firstly, there are governments which do accept Bitcoin, which already means that the statements aren't universal. Also, corruption is a global problem, but the severity of it strongly varies from one place to another.
Secondly, there are very different governments based on political regimes (democratic, hybrid, authoritarian) and circumstances (strong or weak economy, sanctions or no sanctions). If it's a democracy, it's harder to restrict something there, including Bitcoin, than in other political regimes. If there are big motivating circumstances, even a regime that would prefer its people not to enjoy the financial freedom that Bitcoin gives can opt toward more friendly policies. Moreover, you're saying the reason isn't that it's decentralized, but then say it's because they can't print it, which is actually precisely because it's decentralized.

You do get that doing the latter is much harder than just changing a number in the database, right?

In the EU and USA, the government spending is publicly known. A country can't just buy billions without the rest knowing it, unless it's completely non-transparent.

In our part of Africa, Crypto usage has become very dominant in West Africa Nigeria, and Ghana, It has become a savior to the depreciating cedis and the naira yet the central Government of both countries is doing everything to curb these activities. Crypto companies in Ghana and Nigeria are still suffering under the hands of SEC on assets bans, the fear of the unknown is the main reason why the government of Ghana and Nigeria is not willing to adopt cryptocurrency and give room to the rise of crypto companies

1. https://cryptonews.net/editorial/regulation/fear-of-the-unknown-prevent-the-government-of-ghana-to-accept-bitcoin/
2. https://blog.mybitstore.com/how-is-crypto-and-blockchain-adoption-progressing-in-africa/
3. https://african.business/2022/07/technology-information/what-you-need-to-know-about-the-central-african-republics-adoption-of-bitcoin/

Money is a big business.

Building trust takes time and consistency, This is a marathon, not a sprint, and I still believe the government finally comes to terms with BTC. Crypto is a world. Just buy when the dips and wait for another pump on the way.
 
Btw, It looks like Texas has finally seen the light

The government itself thinks that if Bitcoin is accepted, the country will develop economically and the country will be able to keep pace with the times, but many countries do not accept it because they think that they cannot control it and through it the people of the country will be able to evade VAT tax.  And activities like money laundering will become easier. Considering these, they refuse to accept Bitcoin

Bitcoin is everything fiat would ever be with its decentralized and anonymous nature, and government don't like such things,  not being able to track the transaction activities of people is not a good idea. Bitcoin gives power of financial freedom to the people which makes it very popular and ready to compete with traditional currency owned and controlled by the government.

As a result, governments are finding it difficult to adopt btc because it could potentially compete with their own currency and undermine their ability to control the money supply and interest rates. Although there are other reasons but to me, this is the most significant among them all.

First we should look at the indices that make up the whole concept of bitcoin and what it stand for, as we journey into acquiring more knowledge about bitcoin we open up our mind to accept a decentralized and proven cryptography.

Just like mathematical equations bitcoin as a computed data have made decentralization and independent individual freedom more achievable.

Beuocratic government may not welcome the idea of decentralization, but bitcoin have continued to thrive for better industrial technologies making it evident with proven track records.

Because of not being able to control Bitcoin, the government gives various restrictions. Basically to hide their inability, they try to bring forward some negative aspects of using Bitcoin. But the reality is that most of the government loses by the using the strategy too. Because the use and potential of Bitcoin is at its peak everywhere. People's loyalty to using bitcoin is constantly increasing. It is now used as the top of all payment methods and investments. But when the next generation can't imagine anything but Bitcoin, the government will have no alternative but to take a positive stance on Bitcoin.

It is actually not so much about self interest but mostly about control. For example imagine if the government wanted to freeze someone's money (like the Canadian government did last year to its protesters) they can only do it if they have full control over their people's money otherwise if people were using something they have zero control over (like bitcoin) there is nothing they could do.
Ergo the governments are almost always against bitcoin and want to prevent bitcoin adoption, of course exceptions apply like El Salvador.

Governments that really want to advance their people are very rare nowadays, mostly they want to enrich themselves.
everything has been seen from the start that they are running for government, everyone is playing money to win, even though things like that are strictly prohibited and do not show leadership.

that's why bitcoin came as a decentralized currency, they immediately rejected it.

I don't fully accept.

You said the government won't be able to print Bitcoin like Fiat, but they can manipulate the price by releasing a deadly virus to give faded hope to humanity so they can grab every chance ..

They call Bitcoin fraud and later behind the scene they buy as many as they can, how sure are you that the government isn't buying bitcoin for years already, they can't beat Bitcoin, accepted, but they can join the train and create fear and panic to drop the price.

Do you know that people are paying taxes on their Bitcoin holdings? That's bringing in money as well, there are ways they can still monetize this crypto space as a whole, do not underestimate those people.

It's a good thing that Satoshi Nakamoto is unknown, he knew what will happen if he came out in the open.

The main reason why the government won't accept bitcoin is because they can't regulate, trace, or track it. They want to at any time investigate and monitor your financial activity and, if necessary, freeze your assets, raise interest rates, and collect taxes. But bitcoin is so decentralized that it is ubiquitous due to how it is distributed. As a result neither the Commodity Futures Trading Commission (CFTC) nor the Securities and Exchange Commission (SEC) can easily impose their will across borders. Furthermore, there's no one the government can hold responsible for anything that goes on with bitcoin.

1. https://www.skadden.com/insights/publications/2021/04/the-distributed-ledger
2. https://www.everycrsreport.com/reports/R44918.html
3. www.govinfo.gov/content/pkg/CHRG-115hhrg31384/html...HRG-115hhrg31384.htm

At least for western democraties, that's a dire view of elected officials. Perhaps Plato put it in a more balanced way in The Republic (mother of said western democracy), to the effect that the best suited to rule are least likely to want to, and perhaps those less suited to rule will be more inclined to desire power due to their own shortcomings.


That's not quite correct, in my opinion, in the sense that the finance industry successfully lobbies to create incentives against decentralised financial tools, which otherwise they want to continue to provide and control, at a premium. I've been on the lobbying side, and in my experience it is laughably easy to convince officials to see the light, usually because of very human insecurity and reverence issues, rather than outright bribes.

The other and major part of governmental non-acceptance is, I believe, precisely the decentralised qualities; every government's first and foremost issue is the successful taxation of its constituents, and in a fully decentralised financial system neither verification nor enforcability are feasible.

Another proof, many country trying to develop CBDC that are used to divert crypto users. It seems that China has succeeded with government coercion, although I heard that there are still crypto activities being carried out. CBDCs I think are ultimately the same as coins or paper money because their system is centralized, so control is in the creators or the government.

This is quite contrary to crypto technology. Even my country has issued a Whitepaper for the CBDC project although I am now very happy that Crypto has been recognized as a commodity asset in my country. Even they have implemented taxes from crypto.

They do can! but the way of the government steal our Bitcoin is different.

They can't print more Bitcoin out of thin air, but they can force their citizens to use the exchange and wallet they've built, they can create an exchange with high trading fee, withdrawal fee and automatic income tax calculation on their own wallet and exchange.

It's actually a win-win solution for both government and citizens, but making Bitcoin become legal tender isn't easy task since they need to follow the whole Bitcoin regulation and they need to face a politic problem from countries which ban Bitcoin.

Governments want to intervene in humans' lives. The market the least, let's leave the personal part asides. They intervene in the market with taxes, and, if they're tied with a central bank, with the creation of money. Such ability is without doubt strengthening the government, because it gives the power to experiment with the economy without paying the potential loss; that will be paid by people who don't have a direct affiliation with this practice. So, any mistake a governmental secretary does, isn't paid by themselves, but by another fellow. So, there is less incentive for the secretary to not think recklessly.

Bitcoin isn't administrated only by the people in power, but by the people in general. That obviously isn't liked by the people in power.

Government will not likely rely 100% something that isn't thier creation and something they cannot control. The government knows how to control her citizens. They know how to filter the information and give us mutilated information.
The government is used to crooks and manipulation, it they will not accept bitcoin which they cannot easily manipulate.

Another question is why accept alternative currency when you have a working and well trusted fiat?

Well, I think the main reason is fear. They can't control Bitcoin and that's why they're afraid. It can't be confiscated or held. Also the fact Bitcoin is actually doing better than any FIAT currency: it's free from inflation as it has limited supply etc  

 Most of the reasons as to why the govt would be adamant on fully accepting Bitcoin has been enumerated here but I'd like to point out another reason; encouraging and accepting Bitcoin will directly mean they are relinquishing control and without control over your finance, it becomes difficult for banks to dictate how you spend your finance.
 Till date, there has been the issue of banks and govt fighting against the digital coin, with it's penchant for high volatility, it is regarded by them as unstable and untrustworthy; these are true facts but their main reason of objection is so control is not taken from them. Too bad for them that the scales have fallen from people's eyes.

The main reason behind not accepting Bitcoin is because Govt will not be able to see the actual portfolio of any citizens and they will not be able to charge tax. Bitcoin is decentralized and it's cannot be controlled by government. Central Bank are the main opposition of Bitcoin in any country. If people start to make invest in Bitcoin then They will withdraw money from the bank and no government want this.

Yes this is also one reason and only those citizens can use it for payment system whom can use mobile also. Rural area citizens will not be able to do this. The supply of BTC is also limited and price of btc is also variable and did not backed by any thing.

In developed countries where humanity is respected and citizens have rights to fight for their freedom, governments are not free to do everything they want. They have to step back and accept some requests from citizens.

Oppositely in developed countries or ones from third world or from countries with dictatorship like Russia, North Korea, Cuba etc. people have zero freedom or little freedom. They don't have basic human rights and governments have more power.

If Bitcoin won't die, governments can not banned it or killed it entirely. If they can not banned the Internet and can not restrict ASIC manufacturers and Bitcoin mining farms, they can not kill Bitcoin.

They can not steal your bitcoin if you store your bitcoins in non custodial wallets.
In contrast, they can steal your bitcoin if you store it on centralized exchanges that can be fully controlled by governments.

You are correct, OP; as we all know, there are numerous reasons, aside from the one you mentioned, why bitcoin cannot be accepted by the government. It is not the case that they can print as much fiat and steal as they want. Today, government funds are stolen or diverted to different accounts which are not in physical currency form but in digital form. Being decentralized means they can't print it. So your point about them not being able to print it as they please is one of the reasons it is decentralized.

The kind of people we have in government are people who always want to fight for their selfish interests,  anything that will surely benefit them. If it's something good that has to with better development for humanity as far as it won't benefit them they will surely go against it.

The reason government won't accept bitcoin is not because it is a decentralized currency,  it is because they won't be able to print it like they print fiat  to steal as much as they can .

If bitcoin is something the government can manipulate to steal public fund they would accept it even before now without any delay.