Topic: The Role of Government in Crypto - page 3. (Read 1348 times)

Bitcoin was born to be unregulated. It is the powerful decentralization that is the soul of Bitcoin.
The government only acts as a bridge between cryptocurrencies and people. The government imposes regulations and cleans up the cryptocurrency market. That provides a better user experience and promotes the growth of cryptocurrencies.
The government has a hand in KYC and that's not very good. I love the privacy, anonymity or pseudonym in transactions like the very purpose of Bitcoin that Satoshi created.

Of course, the government of a country cannot play too big a role in crypto because crypto has a decentralized nature. however the government can legalize and supervise transactions in the form of crypto so that they are not used for improper purposes.

No country's government has any role in crypto even if they want to they can't do anything in crypto because crypto is out of their control if the government wishes it can boost the country's economy through crypto. Governments of different countries are thinking of investing in crypto through crypto height.

And then, I was hoping to see the fast adoption as we are long existed and never have been at the level where Bitcoin become the major use of the people for their daily activities but still tied up with fiat money. I understand the situation where it still needs time but for more than a decade being around, I think it was long enough for these leaders not to see the benefits it give for these cryptocurrencies to the community.

Anyways, there is a perfect time for crypto and I'm still in a positive to experience buying a case of beer using BTC someday. 

most countries around the world are already boarding on the blockchain technology for enhanced economic development and financial operation as some countries already under way in developing their own digital currency which will be a centralized currency and others are already adopting the existing decentralized cryptocurrencies.

We all hope that as a crypto community, all countries can support crypto like what El Salvador has done so far. But the reality is quite sad, because
there are still countries that prohibit the use of crypto. Actually I can understand why there are still countries that reject crypto, but countries that
reject this should also see the benefits that can be obtained from adopting crypto. Don't just focus on seeing the negative side of crypto, as long as
more benefits can be obtained, why not try to accept it first. Hopefully countries that have not accepted crypto can open their minds soon, that crypto
can help the residents of their countries.

The only option that the citizens of China have to operate with crypto is acquiring their own stablecoin, and it is normal, for a long time the Chinese have been working on the psyche of their citizens, since they have put the Bitcoin technology first with FUD , then with FOMO to later be able to enter with its stablecoin, which in fact managed with all its power to minimize the launch of the Facebook stablecoin, which they said that Facebook's Libra was the exact copy of their stablecoin, but due to the pandemic China managed to get the most out of it, therefore it became a great monster of the economy, worldwide the best economy for now is CHINA, all its economic problems disappeared, all this is due to that dominance that it still has over its citizens, that is why they do not want to lose that control.

Yes.

That's the first country to adopt bitcoin as a legal tender. It cannot be denied that they play a big role for the massive adoption.

They're giving that support to the adoption if they allow so and give their people a go signal to adopt it.

may not be that simple, the economy of a country involves many things. even if cryptocurrency in the country is legalized it will not have a significant effect on the country's economy. but of course it's not that easy for a country to legalize crypto, there will be processes and stages that are very complicated and of course take a long time.

I think government is only regulating the centralized parts of crypto and parts where its exchanged to FIAT.    There is no title deed or recourse for a crypto deposit unless its already held by a company with fixed legally registered offices, so that would not be on the blockchain at that time.   Its a proxy for the crypto but when held in that way its no longer really part of crypto so government regulation is to be expected at that point.  

 The same thing already happens in normal finance, you can get legal IOU for various commodities.  A ticket for ownership of oil but in fact there is no oil, nothing stored and nothing delivered just price tracking and if the company who created the IOU goes broke so does the worth of that IOU.  I presume off chain deposits can easily end up this way, the law protecting people when its more like a debt or IOU is not something I exactly rely on.
  I have traded BTC at a company where it had bank deposit insurance (I was ranked as consumer vs the above example is at risk investor unprotected), so I'd get back the cash value for the loss at time of failure.  This was central government protecting my crypto but really there was no BTC just price IOU on a spreadsheet somewhere.    Later the central bank decided only a millionaire was allowed to trade BTC, I was excluded hence I was regulated out of crypto trading in that point of access anyhow.

If all the countries treated crypto the same just like how El Salvador does, it surely helps people to gain interest in crypto but too sad to think that many have been harsh and even ban crypto. This couldn't really help to promote adoption but this will only lead to some worries. Well, it has to believe that some leaders have a different vision towards crypto, most of them this was the reason for their economic failure due to having no control over it. Maybe they are right as we never pay tax with them but to think how it becomes useful to the community at this time, they should have to support this instead. 

El Salvador is one of the countries whose government is very supportive of crypto, even the government of El Salvador is undertaking a program
that makes the crypto adoption process faster. This means that the government's role is very large for massive adoption to occur, I believe with
the current achievements of Bitcoin, could awaken some countries to accept cryptocurrencies. I agree with you, there are still many countries
whose governments are open-minded, who will consider adopting crypto in the near future. We just have to wait patiently for this to happen.
but so far some countries whose governments are starting to accept crypto. Although it is only a digital asset and does not allow it to be used
for payments, but it's a good start.

The government of a country can play a significant role in cryptocurrency. Cryptocurrency can drastically change the economic condition of a country. Cryptocurrency is widely used in the country if the government so desires Can be used for the development of the development of the country.

This is the reality that we need to accept, despite crypto is decentralized, the majority of it. The government is going to take their part for the massive adoption.

Not all of the governments are closed minded, there are many of them that have been looking at it and considers adopting it.

The role of government in crypto should probably be no different from its usual role as regulator, however the devil is in the detail: how is crypto going to be regulated without hindering innovation, what is going to be considered crypto, how is that control going to be implemented and perhaps we could even go as far as saying what is going to be legal and what is not. Obviously, governments need to act on this promptly for fiscal reasons and to avoid the already thriving scandals.

I would also add that the role of the government is to try and retain a stable society - ideally aiding it with laws that give it the best prospects for growth balanced with societal issues like environmental protection. Cryptocurrency has taken the world by storm and somewhat blindsided many governments who are slow to adapt to revolutionary new technology at the best of times. They have to be able to track money flows around their economy, at the very least to monitor large scale criminal activity. The average person should not be afraid of such regulation either, because if the smallest "investor" is paying fairly then the largest players should be made to play by equal (if not more punitive) rules. That way any money raised can (or should) be used to fund useful projects for the benefit of everyone - emergency services, roads, free libraries and museums, and all sorts.

All of the middle country trying to establish BTC facilities and most of the users trying to utilise Digital facilities. just This moment only government can establish it very easy for that reason government role is very important in every country.

Exactly. Everything lies from the government. Crypto will be in faster adoption if the government will cooperate but unfortunately, their minds are still closed to crypto or bitcoin in particular. I have this in mind that maybe once bitcoin will still create huge demand from people despite of their opposition, they might create their own crypto that will be in full control with them.

The thing that makes a barrier for bitcoin is definitely of its being centralized. I don't think the government will trust a currency that is out of their control and if they do, banks and other institutional finances might be put to its end. So as far the government won't start to support crypto, then definitely it will not be regulated and of course will never be adopted legally.

Government approval gives trust to the people.

So those people that don't trust bitcoin and other cryptocurrencies, they will have the trust because it is the government that is backing it up.

And that will help the adoption of cryptocurrencies and will make everyone benefit from it if we're holding the top cryptos in the market.

I would say that it is really not that easy to make sure that you end up with making as much profit as you hope in crypto by considering what the governments of the world will do. If you are a miner, you mine bitcoins and you keep doing that as long as you can, until the very last day that you are allowed (or profitable) because that is what you do, it is what you make money from and you should continue to do that for a long time.

If you believe that china will ban it (already did) then no Chinese miner would have made that money, they would all be going around thinking it will be somehow banned and then they would have not made that much profit until it was banned. Were there some that lost money because they just invested and it got banned right after? Sure there could have been, but there were also huge companies that made billions from this as well.