Many governments now want to control the use of cryptocurrencies. Though this type of payment system has become popular, it has led to several concerns among people. In USA, extensive inquiry is going on against bitcoin. Professionals from different fields are having regular meetings to discuss the impact of bitcoins. Here are three reasons why some governments don’t want the use of cryptocurrencies.
- The government is thinking of proposing a regulatory framework for firms using virtual currency. If bitcoins are controlled with strict regulations, then the original essence of bitcoin is lost. It’s supposed to be decentralized. Most governments are used to imposing strict rules. Like the banks today have to verify customer accounts in detail before opening an account. They would like to impose similar regulations on bitcoin.
- Bitcoins are open to hackers. Though measures are being taken, but there was a recent incident when customers lost a lot of money in bitcoins. So, the people’ money isn’t safe anymore.
- Bitcoins make illegal businesses easier. Buying fire arms and drugs are much easy with bitcoins as this form of money is not traceable. Bitcoins can also be used for terrorist activities. Bitcoins have great potential for becoming the vehicle of money laundering.
All these are quite serious issues and the governments have all the reason to be doubtful about the practical use of bitcoins. The security of bitcoins may increase due to technological advancement in future; but it doesn’t make bitcoins 100% secured. The experts still need to work on the possibilities of making bitcoin a global currency.