It is clear that cryptocurrencies are more than just the latest fad. Instead, they are disrupting how transactions are settled, hence a threat to existing banking, financial and monetary systems. Govts and financial systems members are clearly worried about this threat, but how can gov'ts deal with block chain as under no circumstances will gov'ts cede control of the money supply and power to tax and regulate?
In one way, gov'ts and block chain cryptocurrency is aligned in that gov't wants to do away with paper currencies. The only resolution means that gov'ts must adopt block chain and create new block chain based monetary and financial systems, with only regulated and authorized financial institutions allowed to process block chains, with incorporated collection of transaction fees and taxes.
What does that mean for cryptocurrency pioneers? Ultimately, they will be regulated out of business and all existing cryptocurrencies will go to zero.
What would gov't adoption of cryptocurrency mean for existing currencies, debts, other forms of financial obligations? Would it be an opportunity for gov'ts to "consolidate" sovereign debts or devalue? In the interim, there will definitely be opportunities in cryptocurrencies, until gov'ts finally outlaw and replace them with their own block chain based currencies and monetary systems. Welcome to a brave new world built from a block chain gestalt with uncertain outcomes and no where to hide.
