Less KYC,
banks may have their clients make KYC for years and have always had many people using banks, because with cryptos it will be something different? we need people to do KYC, we need governments to regulate the cryptos, and we need governments to periodically inspect the exchanges to avoid cases of scam and money laundering. with this the banks will be able to allow the exchanges and the people to buy and use cryptos without problems
but with governments seeing btc as a challenge, that seems unlikely.
governments will accept bitcoin
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KYC in setting up a bank account is not as onerous, unless things have changed over the years. You show your driver's license, input your address, you decide on what type of account you'd like, you set up a pin number for your debit card and you are good to go. BTC KYC often involves checks of where funds came from (uhm I gambled and I won, and I bought some others from a BTC ATM with cash and I am paid in cash). Strange selphie requests. I've given more info to exchanges than banks have ever requested and I've still been turned down. If things remain this hard, than at best we have to wait for pretty much all the baby boomers to die off (some of Gen X will never accept it either) which will take at least 20 years.
Without major changes, BTC will not see higher than 100k, and even that is probably pie in the sky. Maybe having us put in our government's ID numbers along with a single ID photo would suffice. I have no problem inputting my SS number to a reputable exchange.
In the end, having the government not involved is the appeal of the whole thing. But I am sure "terrorism" "human trafficking" "pornography" and other reasons/excuses will be used to highly regulate it. If I were in a think tank right now, trying to think of how the USD could be saved, I would think about regulating bitcoin into oblivion. Make any BTC transactions reason for an audit, require onerous fund origin requests of all exchanges, maybe require both a driver's license and passport, a combination many Americans don't have. Threaten Americans with jail and they will fall in line. Of course America isn't the world but the EU seems to fall in line with most of America's wishes, and Japan and South Korea are known US lackeys (sorry Japanese and Korean users, but it is true).
The beauty of BTC is it is decentralized and perhaps some of the money from all these centralized currencies will flow back to BTC, but the less government the better. If they want to help people, they can ban all these cloud mining in HYIP sites.