The use of cryptocurrency is has increase over the years as many people now see crypto as an alternative to the fiat. My question is if the government legalize cryptocurrencies are means of payment, what will be the implications on the global economy?
Even if a government legalizes cryptocurrency, they will not promote it. They will only focus on their own fiat. Also they will most probably create a separate tax class for cryptos and then impose heavy taxes on it. Overall, a government will never encourage its citizens to use an alternative currency over their own currency. Exceptions are there but that will remain as an exception only.
So with such things and no government backing, bitcoin will never be able to become a favorite payment method. To be honest, bitcoin is a bad payment method. Better alternatives are available. So it will stay as a trader's asset or investment largely.