That's true. Government will play a vital role to set the ball rolling. Will need to wait to check how they bring in policies for such currency in place. Will they give the nod to go ahead or will they curb it?
The govt can maybe play a role in short term (a decade maybe at max?) but in the long term cryptocurrencies are beyond govt control..
Well anything which govt cannot control or keep a trap of it do you think they would not like to put a ban on it. And once the ban comes in then you trade or buy/sell that is though illegal means. Need to wait and watch out for.
Lack of trading is actually good for the bitcoin ecosystem as trading has nothing to do with bitcoin. People will then directly earn and spend (and not buy and sell) bitcoins. The government cannot ban internet, govt cannot ban speech - bitcoin works even without computers.