I think government need to study more about bitcoin and how it works. Because bitcoin its not easy to use an entire city that that they not study about it. And maybe they not adop bitcoin because some people are not use technology and they don't know how to use modern technology.
Yeah, governments needs to integrate Bitcoin and Fiat in such a way to use it together. It should be in a way that both fiat and digital currency work side by side with no loss in government revenue.
I'm not sure that the government is ready to take bitcoin. This is especially true for poor countries. The economy of poor countries is not ready to accept bitcoin. In such countries, bitcoin will kill the economy