No government will ever support a virtual currency that goes around borders and doesn’t have the same controls. It’s not going to happen.

I think instead bitcoin will be used to define borders as community standards, regulations and ethics are pushed to the local network. For example - a self driving automobile knows that once it crosses over the state line it can now turn right on red after stop. As these little blockchain contracts (between governance and consumers) add up, there will be a point where we can hardly tell the difference between government and the blockchain.