Why do officials rarely use bitcoin for legal transactions?

5 answers

• Dec 27, 2021 · 3 years ago
  One reason officials rarely use bitcoin for legal transactions is the lack of regulatory oversight. Bitcoin operates on a decentralized network, which means there is no central authority governing its use. This lack of regulation raises concerns about money laundering, tax evasion, and other illegal activities. As a result, officials may be hesitant to use bitcoin for legal transactions to avoid potential legal and reputational risks.
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• Dec 27, 2021 · 3 years ago
  Another reason is the volatility of bitcoin's price. Bitcoin is known for its price fluctuations, which can be significant within a short period of time. This volatility makes it difficult for officials to accurately determine the value of bitcoin at the time of the transaction. It also introduces uncertainty and risk, which officials may prefer to avoid when conducting legal transactions.
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• Dec 27, 2021 · 3 years ago
  From BYDFi's perspective, officials rarely use bitcoin for legal transactions due to the lack of user-friendly infrastructure. While bitcoin has gained popularity among individuals and some businesses, it still lacks the necessary infrastructure to support widespread adoption by government officials. This includes user-friendly wallets, secure platforms, and seamless integration with existing financial systems. As a result, officials may find it more convenient to use traditional payment methods for legal transactions.
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• Dec 27, 2021 · 3 years ago
  Additionally, the public perception of bitcoin as a tool for illicit activities can discourage officials from using it for legal transactions. Bitcoin has been associated with illegal online marketplaces, ransomware attacks, and money laundering schemes. This negative perception may lead officials to avoid bitcoin in order to maintain public trust and uphold their reputation as law-abiding individuals.
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• Dec 27, 2021 · 3 years ago
  It's worth noting that while officials may rarely use bitcoin for legal transactions, they are increasingly interested in the underlying technology, blockchain. Many governments and institutions are exploring the potential applications of blockchain in areas such as supply chain management, identity verification, and voting systems. This indicates a recognition of the value of blockchain technology while still maintaining caution towards cryptocurrencies like bitcoin.
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