The state since her existence have monopolized the totality of the financial system. The post Great Depression era have seen the state asserted herself in the control and regulation of the financial system. While democratically nations can boost of relatively freedoms with regards to human rights, but her citizenry certainly don't have financial freedom. As a matter of fact, the political dimension of freedom is being re-interpreted.
For the purpose of clarity, the concept of state can be used interchangeably for the concept of government. For more detailed information on the concept of state and government kindly see (chrisdonasco, 2013). The underlying background of the state financial control is based on an intellectual academic debates of Keynesian, Monetarist and Austrian school of thoughts. However, the Marxist school were quick to spot out the inherent contradictions but for political ideology and alignment they were down played.
This inherent contradictions were responsible for the 2008 global financial meltdown. Cedric (2017) in his article, "Be Prepared to Say Farewell to Financial Hegemony" didn't waste time to state the obvious. The post 2008 global financial meltdown has led far more risk taking by the private investors. I might not be totally wrong to conclude the aforementioned was the primary reason that give birth to the crypto community.
Cryptocurrencies are digital encrypted coins which can be used as a medium of exchange across sovereign boundaries that totally eliminate the influence of a third party or centralized control.
Cryptocurrencies and the Disruptive tendency
Since the advent of Bitcoin which is widely regarded as the Mother of Altcoins late in 2008, it has grown to establish itself as a technology that impedes sovereign National laws and International financial regulations. In the academic circles, it has ushered in a new economic paradigm that seems to have overtaken them unaware. Baur et. al (2015), identify crypto ecosystem to have a far-reaching disruptive potential outside of the payment area. Timothy Lee (2013) took time to expand Christensen work on "Disruptive Innovation". As against complexities, for him, disruptive technology is one that's simpler and cheaper than what's obtainable in the financial market. Today, it's evidently clear by most people that cryptocurrencies transactions is far cheaper and super fast to traditional and conventional financial institutions.
Cryptocurrencies and Government Regulations
In the early stage of cryptocurrencies development, government of the world completely disregarded it, labeled it ponzi scheme and bubbles that will soon faded into the air. However, as time went on, it began to gather momentum to push its agenda beyond government circles. This so happened that cryptocurrencies became the focal point of discussion, in the academic, financial, religious, media and of course public opinion circles. That the government realized she can no longer turn her eyes away. Especially, given the disruptive capabilities to cause a revolutionary change with no regards for sovereign national law and international financial institutions. It was clear that the battle lines have been drawn and it's time to take decisive measures to clear it of the scene.
On this note, the hostilities posture of the states began, with sustainable increase. The government is no longer at ease, they have unleashed their machineries to crackdown everything about cryptocurrencies, as it's now been experienced in repressive state capitalism of China. For the western world, it's through the instrumentalist of the media, to push sustainable propaganda. However, it seems to have further work for the growth, expansion and adoption of the cryptocurrencies.
The states are not relenting soon, and certainly not willing to give up their hold on the financial system which was acquired in the aftermath of the great depression. The government is increasingly threatened by the disruptive capabilities which is a counter reaction over centralization. The government, inadequate knowledge of the crypto ecosystem, has further limit her from taking full control that will mostly accumulated in the extension of the cryptocurrencies. Hence, there's need to creep in through the back door to the fraternity. This is exactly what they are currently doing with the so much talked about regulatory bodies. They want to be in charge so as to enable them take control and used it to eliminate and fade the crypto ecosystem into the air. This is their conspiracy, taking away control of the financial system will rendered the government less relevant.
In the event that government lose their hold on the centralization of the financial system, the political implications would be that strong financial economic would no longer be able to exercise financial hegemony to the less financial sovereign states, needless of her citizenry. Although, the main reasons of government coming into the crypto space seems genuinely and laudable on the surface. Especially with regards to the activities of scammers, fraudsters and money laundry. But the underlying cause is to take control.
In a quick reaction, the government are exploring the sensational phenomenal of the cryptocurrencies to produce a digital currency. Their goal is that the centralized digital coin will eventually be used to replace crypto coins in the aftermath of cryptocurrencies extensions. It was quick to assert that government can attempt to control systems as evident in China, "but where there's a will, there's a way". He went further to say in the case of eventuality given the government conspiracy plans, the crypto ecosystem will be force to reinforce the same similar behaviour as been observed in China under a repressive government to circumvent it.
Conclusions
I am not going to drown my conclusions so quick, I will leave it open for everyone to throw in their opinions and criticism.
sources
https://chrisdonasco.blogspot.com/2013/12/distinguish-between-state-and.html?m=1
https://hackernoon.com/how-cryptocurrency-is-changing-the-banking-industry-gm8831qv
Wait.. did you just copy @Osato's article?
https://read.cash/@Osato/government-and-the-conspiracy-on-cryptocurrencies-85de57d1