Almost all governments are generally threatened by the existence of cryptocurrency. This can be understood because the government might be afraid of the decentralization system which is the basis of the cryptocurrency. Although they acknowledge that the technology behind cryptocurrency can make financial market infrastructure such as payment systems more efficient, they still worry about the risks that might arise with the existence of cryptocurrency itself, for example, the potential for financial crime, security violations (hackers), operating failure and others. Apart from that, the existence of cryptocurrency is still considered to disturb the financial stability of a country because no one can control it.
But in my opinion, the most feared thing by the government if in the end cryptocurrency is accepted as a legal payment instrument is the absence of a role from the government itself. The central bank can no longer be a transaction mediator, the government can no longer manage the transactions that occur, all will be done peer to peer between users. At present what the government can do is accept cryptocurrency as an investment instrument while studying the application of blockchain technology to all sectors.
If at any time, I don't even know when, cryptocurrency is generally accepted throughout the world, then Mike Tramp's dream when creating When The Children Cry songs will be real. "No more presidents, And all the wars will end, One united world under God"
The governments themselves are not threatened, but their ability to manipulate the money is. Such as overspending and then hiding it by making everyone poorer (filling the gap by printing some more). These types of governments are better to cease to exist. Separation of money from State is good. No more lies, no more playing with people's money.
There is also a LOT of corruption with this in many places. The worst example always lies with the worst inflation, which is my country of course.
They fear that they cannot change the rules of money on a whim. They have been accustomed to sign a decree overnight to fix some stupid mistake of theirs (or to cover some thievery). Well good riddance.
Those countries more used to transparency, freedom and sane economies, are more willing to open themselves and embrace Bitcoin. The dirtiest are the ones opposing it the most.
