Is it possible to ban cryptocurrencies?

The accelerated advance of blockchain technology, its penetration of different areas of the traditional economy, and the solution that it has represented in a very effective way for many problems, such as inflation or financial fraud, certainly raises a question that is fair to ask: Is it possible to ban cryptocurrencies?

Almost from one moment to another, the irruption of cryptocurrencies has brought about a complete revolution in the traditional forms of commerce that we have been practicing for centuries. Suddenly, traditional money is no longer the only way to carry out operations, and central banks have ceased to have absolute control over all financial aspects that involve a country. It’s an obvious question, right?

Why could cryptocurrencies be banned?

Currently, the use of cryptocurrencies is almost entirely confined to the exchange of information or 100% digital resources through cryptography. But nevertheless:

• Given the possibility that cryptocurrencies will eventually become the monetary exchange system that replaces traditional financial structures, and even ends with central banks, there are many theories that suggest that it is only a matter of time before cryptocurrencies will be banned throughout the world.
• Otro argumento que podría legitimar la prohibición de las criptomonedas, es la capacidad que tienen para propiciar el comercio ilícito gracias a la naturaleza anónima que caracteriza a estas transacciones
• Governments and great powers could feel threatened if Bitcoin users could lead their financial lives in an underground economy. But Bitcoin has turned out to be a poor medium of exchange, and there are currently few major companies based entirely on it.

Cryptocurrencies can indeed be prohibited, in fact they have already been regulated in several countries, and only some impose a total prohibition of cryptocurrencies, although in countries such as Mexico, Argentina, Brazil, Chile, Spain, the United States, Croatia, Albania, Hong Kong, Czech Republic, Romania, cryptocurrency transactions are completely legal. Other countries only partially allow the use of cryptocurrencies.

In which countries is the use of Cryptocurrencies prohibited?

Although there are countries where the use of cryptocurrencies is regulated, particularly in the case of Bitcoin, countries such as Canada, Colombia, Ecuador or Vietnam prohibit the operation with this cryptocurrency.

The restrictions in countries such as Saudi Arabia or Taiwan consist of limiting the class of cryptocurrency operations that can be carried out, limiting financial institutions from accepting cryptocurrencies.

Speaking of the countries that currently ban cryptocurrencies, the case of China is well known, but it is not the only one; Countries like Algeria, Bolivia, Morocco, Egypt and Nepal do not allow any type of transaction or cryptocurrency.

Banning cryptocurrencies is almost impossible

Although in fact there are governments that prohibit cryptocurrencies, putting this prohibition into practice is practically impossible. The clearest case is China itself, the world leader in mine bitcoin, and where the restrictions to do so are quite high. To effectively ban the use of cryptocurrencies, it would be necessary for the government to have absolute control over the internet. Banning a user from downloading wallet software, running a node, and transacting is practically impossible.

Even in countries with strict internet controls, there are various tools used to circumvent those restrictions. After all, it is incredibly difficult to enforce the cryptocurrency ban when virtually anyone can access the blockchain via the Blockstream satellite using a software-defined dongle and radio antenna (SDR). relatively inexpensive.