Most governments are still suspicious about everything Crypto related. Some even prohibit trade in Crypto, mostly Bitcoin, because of the “high risks” involved. It has been suggested that the bank lobby is behind these policies. However every financial product you buy in a bank has the same risk as with lets say Bitcoin.
Some forward thinking governments are more open to the use Crypto in general, like the US government and others. Most of these progressive policy makers have asked the question: What could Crypto do for us?
The answer is quite a lot. Just like Crypto can be advantageous for companies of all sizes, so can digital currency provide a significant boost to the government finances. Crypto can be used to fund certain projects by way of government crowdfunding. Digital currencies can also be implemented for paying taxes of all kinds, government funding of approved projects, building projects, etc.
One might conclude that everything that is currently done by fiat currencies can also be done with Crypto. So is switching to a completely Crypto run goverment a good idea? We think not. Some aspects of government tend to be very compatible with crypto based funding. Offering the citizens the option to pay taxes in digital currencies is another. However paying peoples full salaries in Crypto isn’t a good idea, at least not in the near future.
Whatever the case digital currencies are here to stay, especially the more important ones. The less important Crypto can become more important if people can do more things with said less important alt coin. Its all upto the developers and the governments to see if digital currencies are introduced in a government level.