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 agree, governments are wise when it comes to money thats why even thou cryto currency keeps on upgrading still paper money cannot be replaced easily. Many people likes to have their money right on their hands but still it safer if it is not.
It is not that easy for the governments to accept bitcoin. And why they are not legalizing it? Reason is only one, the decentralization of bitcoin. They dont want to lose control of the currency that works in their country still they cant handle it themselves.
So they will not on the side of making it legal, hence the paper money would keep a better value everywhere in world.