{"id":20372,"date":"2016-01-01T15:40:50","date_gmt":"2016-01-01T23:40:50","guid":{"rendered":"http:\/\/lifeboat.com\/blog\/?p=20372"},"modified":"2017-04-26T13:00:30","modified_gmt":"2017-04-26T20:00:30","slug":"can-governments-ban-bitcoin","status":"publish","type":"post","link":"https:\/\/lifeboat.com\/blog\/2016\/01\/can-governments-ban-bitcoin","title":{"rendered":"Can Governments Ban Bitcoin?"},"content":{"rendered":"

Recently, I was named Most Viewed Writer<\/a> on Bitcoin and cryptocurrency at Quora.com<\/a> (writing under the pen name, \u201cEllery\u201d). I don\u2019t typically mirror posts at Lifeboat, but a question posed today is relevant to my role on the New Money Systems board at Lifeboat. Here, then, is my reply to: \u201cHow can governments ban Bitcoin?\u201d<\/em><\/p>\n

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Governments can enact legislation that applies to any behavior or activity. That\u2019s what governments do\u2014at least the legislative arm of a government. Such edicts distinguish activities that are legal from those that are banned or regulated.<\/p>\n

You asked: \u201cHow can governments ban Bitcoin?\u201d <\/i>But you didn\u2019t really mean to ask in this way. After all, legislators ban whatever they wish by meeting in a congress or committee and promoting a bill into law. In the case of a monarchy or dictatorship, the leader simply issues an edict.<\/p>\n

So perhaps, the real question is \u201cCan a government ban on Bitcoin be effective?\u201d<\/i><\/p>\n

Some people will follow the law, no matter how nonsensical, irrelevant, or contrary to the human condition. These are good people who have respect for authority and a drive toward obedience. Others will follow laws, because they fear the cost of breaking the rules and getting caught. I suppose that these are good people too. But, overall, for a law to be effective, it must address a genuine public need (something that cries out for regulation), it must not contradict human nature, and it must address an activity that is reasonably open to observation, audit or measurement.<\/p>\n

Banning Bitcoin fails all three test of a rational and enforceable law.<\/p>\n

Most governments, including China and Italy, realize that a government ban on the possession of bits and bytes can be no more effective than banning feral cats from mating in the wild or legislating that basements shall remain dry by banning ground water from seeking its level.<\/p>\n

So, the answer to the implied question is: A ban on Bitcoin could never be effective.<\/i><\/p>\n

For this reason, astute governments avoid the folly of enacting legislation to ban Bitcoin. Instead, if they perceive a threat to domestic policy, tax compliance, monetary supply controls or special interests, they discourage trading by discrediting Bitcoin or raising concerns over safety, security, and criminal activity. In effect, a little education, misinformation or FUD (fear, uncertainty and doubt) can sometimes achieve what legislation cannot.<\/p>\n

Reasons to Ban Bitcoin<\/b> \u2026 a perceived threat to either:<\/p>\n