governments simply aren't interested in incorporating bitcoin. they can't deal with the fact that it is something they can't control. paper money will stay at least for another 10-20 years.
Yes it is true. Most of the governments will like to control currency and want to track all the transactions who has done what to protect the system. So as of now this is not possible in bitcoins because they can only trace the transactions but very difficult to find out who as done the transactions so paper or fiet money will be there for ever
Controlling and manipulating bitcoin is much not tangible by the goverment because its transaction is through web and security and privacy is in the crypto-currency. So for me the future of the paper money continues because it is handled by the government not like to bitcoin that been develop by its developers. And legal issues may confirm because government does have the power to control bitcoin itself and its transaction is private to its users. And also there is always a fact that bitcoin needs fiat to its transaction because it may used on daily transaction.