This is exactly like banning SSL for all applications where the owner of the user's app isn't identified.
The French tried to impose this in the 1990s, but once SSL was everywhere, it was impossible for France to implement it, despite building a regulatory and storage framework to register all SSL private keys.
SSL keys can be generated at will almost instantly by anyone without any technical skill. It happens every time you install a browser or set up a server.
Sound familiar?
That's what happens when you download and open a Bitcoin Wallet. It's exactly the same in nature.
Now an absurd ban is proposed for Bitcoin wallets, and it's pretty obvious this would happen in the, "Then they fight you" stage.
This is why I've been harping on about spreading bitcoin everywhere as quickly as possible, so that it becomes a global default that cannot be revoked without killing the internets.
This is also why I've been working to re-contextualize bitcoin away from what people mistake it for to something more like what it actually is.
No one thinks SSL is "encryption"; they think it is "security". Similarly if people think bitcoin is money, then they will think about it as if it is money, as if you "receive" bitcoin, and all other money analogies.
If this false categorization by Google of Bitcoin wallets doesn't go through, the next attempt surely will. Unfortunately, people with power can't seem to understand long term strategic thinking in this area, despite the history of Public Key Encryption tool adoption being widely known.
A necessary prerequisite to bitcoin being everywhere is the distribution of it to billions of people. That's what we're doing at Azteco. When we succeed in doing this, bitcoin will be a common as SSL Certs in your browser.
And no, it will not be enough to simply build tools that use bitcoin; you can't use bitcoin without getting it, and that is the task many people simply run away from rather than confront head on.
Things that seem to be very large, very bad problems can be completely eliminated. Faketoshi is the most recent example, but there have been many others, like the RSA Munitions Export case. Bitcoin can win and come out unscathed.
It will take dedication to make it happen and people who can think for themselves and make up their own minds about what sort of future they want to be a part of building for mankind.
The bitcoin distribution problem is being effectively solved by Azteco, with 700m people being given access to bitcoin in a way that no real bitcoiner could possibly oppose.
It didn't take many people to solve the big problems; technical ones like Public Key Cryptography, PGP (Zimmerman), Bitcoin (Satoshi), BitTorrent (Bram Cohen) and many others. Your only question for yourself is this, "Am I a part of the solution or the problem?".
And if you think you can build a paralell society on App Store Apps that will help billions of people, you are completely delusional.
If App stores can ban Bitcoin wallets, they can ban your sneaky chat app, which, because it doesn't mediate bitcoin, can't change the world, and even if it could mediate bitcoin transactions, cant do so unless people can get bitcoin to use on it, and if they can, that will surely cause an App store ban, because it will be an "Unlicensed Bitcoin Wallet", however they want to define that.
At some point, as has been in the past, a problem must be solved directly. With SSL, it was the rapid proliferation of browsers and the browser as the default interface to all eCommerce.
The same thing needs to happen with Bitcoin; bitcoin must be the default way billions of people spend online, and the way to do that is to seed the global population with small amounts of bitcoin.
When commercial interests merge with the interests of billions of people, you get a platform that completely resists arbitrary change that doesn't serve the people's or commercial interests.
This is what must happen with bitcoin, and it can happen, and happen very rapidly.
