some governments prohibit or prohibit cryptocurrency in their territory on the grounds that it can facilitate laundry money. Fiat currency under government control is still used for money laundering. I think there are more decisions the government and government want to control cryptocurrency which is rather difficult for them because of decentralization
When you see those kind of contradictions then it is very easy to conclude that is not the reason of why they are doing that, and if they are not banning cryptocurrencies because of the possibility of money being laundered then we need to ask ourselves why? And the reason is simple because they do not obtain benefits out of cryptocurrencies and even worse they are affected directly by them and they cannot allow that.
There are several reasons behind this ban of cryptocurrencies.Firstly these cryptocurrencies are decentralized and so no Central Bank or government as any direct control over it.Cryptocurrencies are very volatile and their price depends upon the forces of demand and supply.They are also very risky as they can easily get hacked.People also use fiat currency only for their day to day transactions because it is easily usable.