What are the government's concerns around use of cryptocurrencies? Are the government's concerns valid?

The government is concerned about.,

  1. the use of cryptocurrencies for illicit activities – tax evasion, money laundering, terrorism financing; and
  2. loss of control over monetary policy and flight of capital overseas.

Yes. All new technology, however, comes with hazards. The challenge is whether these hazards can be reduced and controlled to the point where the technology’s advantages outweigh the risks. Concerns were raised about the printing press (jobs), vehicles and airplanes (safety), the internet (surveillance-free communication), and many new technologies including artificial intelligence, drones, and robots. When it comes to controlling emerging technology, a ban is typically not the best option.