Crypto currency is a digital currency that can be send between two people without the knowledge of another third-party which means users can made different transactions without the aid of any financial institutions, banks or government body. Despite the outcome, a lots of people have adopted crypto currency as a feasible financial process.
Various ascending economies with the majority of advanced countries proclaimed crypto currency is valid. Even though, there are still some countries like Vietnam and most especially my country Nigeria that have prohibit the utilization of crypto currency and also China which happens to be one of the advanced countries has also forbid crypto currencies. And from these angle, let's look at the reasons why most countries are against adoption of crypto currency.
Reasons why governments are against crypto currency adoption.
Various countries are against crypto currency adoption because they believe that it can be a menaces to their jurisdiction, while some are agitated that it can be used for criminal motive and some fallacious scheme.
The first major reason why governments are against the adoption of crypto currency is because they believe that they won't have authority over it's adoption due to decentralization. Governments have the strength to be in charge of accustomed currencies like Dollars, Euros, Naira etc and track the movement of money including the fraudulent activities carried out with fiat money. This command over the currency allow the government authority to impact the economy, generate monetary blueprint and so on. But with the adoption of crypto currency, the government will lose authority over the currency system due to decentralization because crypto currency fundamental technology don't allow any central administrations for any agreement or negotiation.
The second reasons is that, governments are concerned about the crimes that will be involved in crypto adoption especially due to decentralization and obscurity, a lots of criminals are using crypto currency as a feasible scheme for an unlawful activities.
Another major reason why some governments are against crypto currency adoption is due to the tax treatment which is quite complex. Since crypto currency work through Blockchain technology, a decentralized network to be precise, the government finds it so complicated to scheme the fiscal policy and tax rules.
Another reason is that they see crypto currency as a threat to operation of central banks. Since governments are the one in charge of country's finance and economy with the aids of central banks. Since crypto currency has come to limelight, mani financial institutions have lost their line of work, which in the long run a loss to the government.
IN CONLUSION
No one really knows may be the whole world will fully adopted crypto currency, but looking at the percentage of people in the crypto currency extent means that it can disturb the current financial system in the future.
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