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.
I think what you are saying is true, that the government is not interested in incorporating bitcoin. Having bitcoin that they can't control will definitely bring them down, starting from banks. It would surely re create our current government system and they won't be able to do anything about it. So I think paper money will still continue for a long time and they will keep delaying the process of incorporating bitcoin.