Topic: Will the government accept it? - page 6. (Read 1186 times)

The world is moving forwards to digitalization. Peoples have been using digital currency without a banking system even they aren't familiar with cryptocurrency. For example, there is much mobile banking where you don't need to carry paper money, and you can use that digital currency everywhere the same as paper money. I think we aren't too far when peoples will use cryptocurrency for daily needs. It would be or wouldn't be Bitcoin, government would create their own cryptocurrency backed by fiat. I don't know if we will live up to that time, but as a part of global mobilizations, the digital currency would role the world.

Bitcoin is incomplete if there are no people willing to use it, support the network, innovate on it, make transactions with it. Bitcoin is decentralized, which means it relies upon people providing that decentralization. Bitcoin as a software co-exists with people using that software; it's a mutually beneficial relationship. However, people are different, there is a huge diversity among humans. They pursue different ends, have different opinions, mindsets, beliefs, priorities, etc. That is why some of them will choose to keep their bitcoin keys in the bank's safety boxes, instead of employing self-custody solutions, for example. Banks are an essential part of our society, and the goal of bitcoin is not to destroy the banking sector but to improve it.

These aforementioned are already the case in loads of nations. People are finding it difficult to undersand the why the government is making sanctions (although in some nations) concerning crypto and also some countries are accepting crypto as they now know it is almost impossible for people to be kept away from crypto related transactions therefore there arises the need for them to make regulations as concerning the event of blockchain related operations so as to also keep track of their transactions.

So in the end we can say that our society is useless without banks.  Isn't that so?
Isn't it true that Bitcoin is incomplete without a bank?

That will depend on their regulations to accept bitcoin or will not accept it because they are the ruler of that country. If the government can see bitcoin's advantages and learn about bitcoin, they can accept it and change their banking sector.
1. But I don't think that the government will want to abolish their bank from their country because, with the bank, they can grow their economy.
2. The government will have its ways to collect taxes from the people, even if they need to force their people to pay the taxes to grow their country.
3. I don't think too far, but no matter if the government can track each people's money or not, corruption will exist, and maybe that will still grow in many places.

But we will see what every government will do, which does not already accept bitcoin later, and we can hope that the government can accept bitcoin like the other country.

1. Historically speaking, there were two types of banking in the past: loan banking and deposit banking. Both of these are one of the greatest inventions of humanity, and, obviously, they were not created in a vacuum. People needed banking services, and wanted loans and safe deposits. The problem is not in banks per se, it is essentially a business like any other. The problem is the money they are using. If money, for example, paper receipts, could be easily inflated, debased, counterfeited, that leads to fractional reserve banking and a flawed system we have today. If banks and governments start to use bitcoin instead of unbacked paper, the banking sector will be more healthy.
2. Aren't they collecting crypto taxes today?
3. It is a common fallacy. Government control over money only increases the level of corruption.

Never! Banking is the backbone of the economy because the current economy is a debt based economy. Banking sector is also the biggest investor of the government infrastructure projects. So government wouldn't ever want to replace the banking sector with something that is not within their own control.


As there will be no change in the banking sector, government will collect taxes as they are doing now. The process may get more digitalized and less cumbersome over time. But fiat will rule here!


Yes! That's why every government is trying to impose various laws and trying to include the banking sector within the process. If people transact in cash, then it is little difficult for the government to track such transactions. So every government will slowly move to the digital currency system which will eventually replace the physical cash system. Chinese government has already started testing their digital yuan in some cities. This way government will track each and every transaction made by their citizens. Digital central bank currencies are designed to get more visibility on their citizen's finances!

Answers:
1. Possibly not. Also banks are private sector, government revenues also come from these and no wonder all will be against on abolishing it. Its not about the community decision but also some government considered tax way more than others.

2. This will be a long debate. But there are countries already established tax system on some crypto activities. But seriously not all are favor with this especially the anon guys.

3. Corruption happens everywhere. Tracking every users asset and fund will be a game of cat and mouse. Some of those will always find a way to hide or evade tax payment no matter what.

1. It is not easy to remove a bank in government, because a bank has its own system for managing a country's finances, in my opinion this is also against the principles and vision of bitcoin at the beginning, because bitcoin itself has the principle of an alternative financial transaction system. conventional.

2. In fact, the government can make a policy to deposit a portion of taxes when using bitcoin, this of course will be used when the government has really legalized bitcoin as an alternative means of payment.

3. I think we now know that there is KYC that is always needed in every exchange and to stop the rate of money laundering, of course this is also an obligation when we are going to use an exchange, such as binance or others, even on my country's local exchange, KYC too applies.

Why do people only reach the conclusion that once Bitcoin grows the only end would be the abolishment of the banking sector? There's quite a clear cut difference imo, most of it lands upon the QoL improvements crypto and the bank could give. Bitcoin, or crypto in general, provides anonymity as well as international transfers without much issue, but you manage your own funds yourself, safeguard it yourself, handle the fees (calculate when pool is free or not if you want to skimp on it) and stuff like that, while Banks do get your info, but in return makes transactions more automated (supposedly). It's like the fight between having privacy and manual, and no privacy but automated transactions imo.

1. No
2 and 3. a centralized government that keeps tracks of the general BTC addresses of most people, which basically defeats the logic of decentralization tbh, which is why I doubt banks would get abolished.

1. I do not think that they will ever do that, they benefit from it and most countries have central so that will be far from happening, crypto will set people free from banking institutions but governments will try their best to get a piece of the pie.
2. Tax collection is already happening for most people, buying items and equipments already has a tax in it. Internal Revenue have their way to crackdown on tax evaders and they know that they can't be messed with.
3. If a person who does not pay taxes gets a lot of properties or assets in general, it will raise suspicions, and most people who gets a lot of money are not expert in tax evasion so most of the time, they will be caught, it is only a matter of time besides people will not become corrupt if they know that fucking the government will only lead to them getting bled dry from penalties for tax evasions.

This is the reality as long as we are modern.  Think back to ancient times when people didn't know what money was.  They make transactions through products.  That is, one would replace the other's meat with vegetables.  And that was the process of their transaction.  People have changed over the course of the day.  At one time they used the leaves of the tree as a means of transaction.  Later, gold coins and silver coins were gradually introduced.  And today paper money has been created to make transactions easier.  But even 300 years ago there was no bank, and today we cannot go without a bank.  In the same way, 20 to 30 years from now, maybe the banking system will go up.  Because people don't want anyone else to know their bank account.  And people will choose digital cryptocurrency as an alternative to this bank.  Bitcoin may be his alternative.  Bitcoin is a decentralized process. This means that there is no need for a third party in this process.  There will come a time when people will no longer take the help of banks.  They will manage all the activities of daily life starting from shopping through digital cryptocurrency.

  If my idea proves to be correct, will the government of the country accept it?
 1. Will the government of a country ever want their banking sector to be abolished?
 2.  How will the government collect taxes from the people?
 3.  If the government can't keep track of people's legitimate money, won't corruption increase?