The potential of cryptocurrencies to disrupt the existing financial system is undeniable. However, governments around the world are wary of the skyrocketing success of digital currencies such as Bitcoin and Ethereum. This wariness can be attributed to a combination of fear and lack of transparency in the cryptocurrency ecosystem. At the heart of the issue is decentralisation.
Bitcoin's underlying technology allows for transactions to take place without any central authority, meaning that governments cannot regulate monetary policy or exercise control over the monetary system. This is a major threat to traditional governments and finance, which are often corrupt and rigged. Cryptocurrencies offer total anonymity and freedom, two things that governments, including democratic ones, do not like. In fact, governments do not even like their own banknotes, as they provide anonymity and too much freedom.
It's like going into gangland territory - governments are afraid of what could happen if they lose control.The attraction of a cryptocurrency is that it can make transactions between two individuals secure and possible without inefficient intermediaries like banks and regulators like governments. This is why governments are so wary of cryptocurrencies - they are a threat to the established system.