I totally agree with your thoughts here. Rather than pushing BTC down, their focus should be to stabilize their currency in a way that its not hampered by the legalization of Crypto currency anywhere in the world. If a country like USA, whose currency is the strongest in the world, is pushing such steps away to keep its economy intact, I wonder what's gonna happen to the rest of the world.
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This would make perfect sense. But politicians tend to act against logic.