People loathe the digital currency. Simply because it has given birth to a gazillion new ones. All of these currencies are a solution and a slapstick to the exploitation of some government regimes, business oligopolies and conglomerate and strong manipulative bank systems.
The banking system globally, with all organisations like IMF and WTO and the SEC etc are all very angry at bitcoin. Here is why:
Banks can now be cut out of the system of innovation, development, creation of value and liberation, they can be redundant now. Just in case they are not redundant, they at least have a challenge now. Competition is good. Monopoly like huge banks have caused economies far too much trouble than one could imagine!
Banks and larger banking organisations are snubbing Bitcoin and other cryptos to suit to their own survival. They will, in worst case scenario try to adapt to them by either introducing their own currencies on the digital format or by using elements and offering a secondary solution to areas where fiat currency is inadequate. They do not like change and they certainly do not like the kind that is so technical.
Thus, they will do anything to contain the change.
There’s also the issue of the fees banks earn for the services they provide. Less bank involvement means no more or very little transaction fee for a very huge banking network! If they are really thinking survival they will have to cut down on their resources enough to generally cut down on their services and then on their size, becoming smaller by day and being less structuralists than ever.
Those fees obviously generate a lot of revenue and a lot of jobs across the global banking industry. Without banks, those jobs disappear, as does the tax revenue those banks and their employees’ paychecks generate. This means that the governments are also quiet worried. Also, it is easier for governments to tax people through banks and while cryptos are new and developing there is a great deal of learning that is yet to take place there.
Money transfer business would also disappear in a virtual world. Nobody needs Western Union or its competitors if everybody is using bitcoin. That is a very tricky situation for the governments and depending on their inclination of ideology they are likely to pivot or not.
Plus, this means that the governments will very quickly have to come up with very sophisticated and very strong mechanisms to control, regulate and monitor the money flows, this is entirely possible only governments pace of learning is too slow and often inadequate in terms of policy making and law creation world wide.
While some governments are already looking into this, most will fail to. Thus countries like India and China despite being tech-oriented and startup-excited are trying to ban cryptos. This does a poor job at containing the crypto activity it only allows people to be more and more creative in trying to break the law because in their hearts they know this is a victim less crime and some governments are just phobic and backward.
But, Banks and Governments both worldwide, are trying to put a lid on this soda bottle explosion of cryptos that everybody wants happening!