Bitcoin can help the economy and can reduce poverty someday. There will be more businesses, traders, investors and opportunities for everyone to get involved. Because they apply the rules for exchange, millions of taxes can also be collected if the government allows Bitcoin to continue growing as the community might support and invest in Bitcoin, I see no reason to have any problems or conflicts with it. Whenever we withdraw our funds in the local exchange, there is a tax, so that's why they need to let Bitcoin grow and thrive
I think it will not be bad when bitcoin and government go parallel to each other. Government can get benefit from bitcoin business if government recognize bitcoin a legal currency in the country and impose taxes on exchanges.
In this way more people will move towards bitcoin and business in the exchanges will also grow and this will be a direct income for government respect to collecting taxes from exchanges. Government must have to think seriously about this.