Actually they do understand, and it just happened to be that it goes against them. Imagine that you're governing a lot of people and your people would use something that is under your radar/observation. Pretty much you would think that they are doing something against you.
The part that they don't understand is that people need the privacy in their own money, not to be regulated by someone that is at risk of being taken away from them.
agree, leader will stroke people who follow their rule. when people dont follow it, they have some option like ban what people hold.
but its hard to give privacy up to people, because control is the best part of leadership, to give higher convenience to do what they want