Crypto Mass Adoption: Why Governments are Running Scared

A government that treats its citizenry right always gets back good support. However, an oppressive regime forces its subjects to get ways to frustrate it and that is why most governments are scared of mass crypto adoption.

To date, there are many governments that are not happy with the disruption blockchain is posing to their existing industries and other structures. They also think by adopting cryptocurrencies, tax collection will be hard and this will make them go under.

Crypto is Huge threat to Governments’ Fiat

Most government sees crypto as a huge threat to the fiat currency. However, fiat only has value because the government says so; it is centrally controlled and has worked well since batter trade became absolute by the fact that authorities were not benefitting from it.

You need to have fiat to access goods and services and only the government controls the prices and the amount of fiat in circulation. The entry of virtual currencies has disrupted the authoritative school of thought that the government controls its fiat.

Fiat Used as Economic Influencer

For purposes of economic influence, governments control their legal tender through central banks and they can dictate who gets the profits and which direction money takes. This way, fiat tends to favor select businesses at given times.

The entry of crypto means the function of a banking system is negated and that is what the government thinks. However, it is about choices and users can go the crypto way or stay put in the fiat economy. The end game is to end the monopoly over who controls the economy.

Blockchain Superiority

Blockchain is all about transparency and immutability and this does away with third parties and spells the end to vices like corruption. In most developing countries and some developed ones, corruption is a way of getting rich quick and rejection of crypto means rejection of the technology it rides on and thus the end of crypto mass adoption.

Associating crypto with crime only makes it more popular not all platforms are anonymous and traceability of transactions is by choice. Drug trafficking, terrorism, tax evasion and money laundering have been there before the crypto entry into the world; the only thing that has changed is a new channel to do these businesses.

With all the challenges, virtual currencies are here to stay and it is upon the user to decide which works well for them. Crypto mass adoption might take a while and the central authorities will keep defending their financial territories until they accept the technological reality of the future.


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