A couple of countries have launched their own cryptocurrencies and some are planning to do so. The governments know that bitcoins can't be completely centralized and hence creating their own fully centralized version of cryptocurrency. Legalising bitcoin and making it a part of a country's financial structure is in no doubt beneficial for bitcoins growth, but instead using blockchain technology to roll out their own digital currency and ultimately banning bitcoins, would it affect bitcoins progress? What do you think?
Countries with their own cryptocurrency, Ecuador, China, Singapore just tested digital dollar via Ethereum blockchain, Palestine is planning to launch their own currency and and a few countries are studying the blockchain technology closely.
IMO, governments legalising bitcoins is the best way to achieve mass recognition. On the other hand, if more countries launch their own digital currencies and proclaim bitcoin as illegal then that would definitely halt bitcoins growth, but only temporarily. Banning internet is altogether on a different level than banning bitcoins. So the growth would be halted, but the internet money would bounce back.
Streisand effect.
The Streisand effect is the phenomenon whereby an attempt to hide, remove, or censor a piece of information has the unintended consequence of publicizing the information more widely, usually facilitated by the Internet.
In what way do you mean, will it affect Bitcoin? There are actually two different ways to ask this question. The first is, will people prefer to use government-issued digital currencies instead of Bitcoin? And the other is, will governments wage a war against Bitcoin so that they can be the only provider of digital money, and so people will have to use their digital currency?
The answer to the first question is; for the people who want the government to be involved in the economy, with regulations, price fixing, taxation, and public spending, those people will probably choose to use government-issued digital currency. The people who don't want the government to be involved in the economy and don't want taxation and public spending (people who want there to be a real free market, with the price of money entirely determined in the free market), those people will choose to use Bitcoin.
The answer to the second question is, the future of Bitcoin will ultimately be determined by the people. Even if it were banned many people would continue using it.
I really do not think we need those kind of exposure. 