Is bitcoin a government currency?

In April 2022, the Central African Republic became the second country to recognise bitcoin as an official currency. What are the benefits of adopting a government cryptocurrency? Many governments around the world are wary of making cryptocurrencies legal tender because of the financial, legal and regulatory implications that such moves can entail.

How have governments reacted to the introduction of bitcoin?

A balance has not yet been struck, and so accordingly, major governments have reacted quite differently to the introduction of bitcoin (and other cryptocurrency technology) in their respective countries. Reactions have ranged from apprehension and fear, to full-scale acceptance.

Can bitcoin be regulated?

In its current form, Bitcoin presents three challenges to government authority: it cannot be regulated, it is used by criminals, and it can help citizens circumvent capital controls. Until the time that Bitcoin's ecosystem matures, it will continue to be viewed with distrust by established authorities. In What Do We Trust?

Why do governments impose capital controls on Bitcoin?

Governments often institute capital controls to prevent outflows of a currency because exports could debase its value. For some, this is another form of control exerted by governments on economic and fiscal policy. In such instances, the state-less nature of bitcoin comes in handy to circumventing capital controls and exporting wealth.