Why do countries oppose Bitcoin (Why do countries not crack down on Bitcoin)

Why do countries oppose Bitcoin? Why do countries oppose Bitcoin?

In the past decade, many governments around the world have started incorporating cryptocurrencies into their strategic plans. However, these policies are now becoming increasingly unfriendly and unsustainable: measures have been taken to prohibit cryptocurrencies due to lack of regulatory agencies or investor confidence in the assets; countries like the United States and others are considering adopting Bitcoin as legal tender to pay for goods and services taxes, leading them to turn to digital tokens to address financial risks. In order to achieve this goal, the Russian Federation Council recently proposed a new bill called “using digital wallets.” This law is the world’s first completely decentralized electronic cash system based on blockchain technology, allowing users to transact directly with central bank accounts without the need for intermediaries. However, according to data analysis from some countries, less than 10% of countries recognize Bitcoin as a legitimate investment tool.

So why do some countries believe Bitcoin can be used to evade sanctions?

While central banks around the world are working to address their own issues, they still lack clear guidelines. For example, President Nayib Bukele of El Salvador has stated that he will not invest in Bitcoin and hopes to receive rewards through ICOs. If this decision is successful, El Salvador may lose about 60% of its economic activities. In addition, according to The New York Times, the lower house of the Pakistan parliament held a meeting on July 6th to discuss a new economic aid bill. The proposal praised the people of the Caribbean region for having a high level of trust in cryptocurrency. It also emphasized the value of Bitcoin and its underlying technology. Therefore, some major jurisdictions including the UK strongly oppose this new application as it may allow criminals to take advantage of the benefits of encryption technology to evade the market and seek international capital inflows to the region.

Meanwhile, The Washington Post points out: “Bitcoin has been widely accepted as a secure medium of exchange worldwide and has raised concerns in some countries.” Other countries even call for Bitcoin to be a viable means of development rather than a replacement. Charles Clement, founder of the Canadian Royal Union, said that non-sovereign currencies like Bitcoin are unlikely to replace fiat currencies such as the US dollar. “What we need to understand is that, despite this, no other country has reason to believe that Bitcoin is an effective payment channel.”

Indeed, “Bitcoin cannot be used as a payment mechanism has attracted close attention from countries around the world,” and some countries claim that it has brought great benefits to the cryptocurrency industry. For example, a university in Malta has established a virtual research center dedicated to studying the concept of distributed ledger technology and how it can fundamentally simplify businesses. A project developer in Morocco stated that it will provide a range of payment services in the next two years. The team is also testing the Lightning Network feature on the Bitcoin network. Another key contributor to the project, Abraham Stewart, said, “

Why do countries not crack down on Bitcoin

Editor’s Note: This article is from Xcongapp (ID: xcongapp), author: Wang Jiajian, authorized publication by Odaily Planet Daily.

According to reports, during the period from January to March 2018, the Russian Federation Savings Bank and the National Development Investment Committee launched a crackdown on Bitcoin. However, due to its anonymity and the surge in the number of transactions related to cryptocurrencies, regulators found it difficult to track the flow of funds in and out of the market. This led to measures by governments around the world to restrict digital asset trading behavior and forced businesses to shut down, further pushing up the price of Bitcoin. “If that’s the case,” they said, “there would be no ban on using digital assets.”

In fact, although statements have been made that the country has begun preparations for the cryptocurrency industry, many believe that this news may be a signal of misinformation. For example, US Treasury Secretary Steve Mnuchin recently announced the release of a new report on cryptocurrencies, claiming that “global central banks are studying CBDCs.” However, it is currently unclear whether these new regulations will lead to any new laws to protect individual investors from potential financial crimes or cause greater economic losses for some citizens.

Therefore, Bitcoin’s development cannot be stopped in any case. From this perspective, it is undoubtedly a huge victory for those who may want to transfer value through Bitcoin.

So, why ban Bitcoin?

Firstly, do not let people believe that Bitcoin can be used to purchase goods and services. It is an emerging technology with great potential. It is not just a means of payment, an exchange medium, or even a form of digital gold. On the other hand, this also means that you can acquire digital tokens through other means, such as credit cards, debit cards, or cash, etc. Additionally, blockchain can also be used to fund public utilities. Of course, there are also several considerations: 1. there is no central authority to handle all transactions; 2. addresses in the Bitcoin network cannot be fully controlled and can only be managed by a centralized entity; 3. the data on the Bitcoin network is maintained by multiple independent nodes, so no one can have control over their identity information; 4. activities on the Bitcoin network rely on the validation mechanism of a single server provider or the network resources owned by miners.