The government doesn't want to have an distraction for their leadership in their country because if they will let a currency that is decentralized to take over their country then they will be on a risky situation because the people will not use the fiat more often
I think the only reason why government doesn't recognize bitcoin is because it is a decentralized form of monetary system and its hard for them to interfere, so the only they can attack bitcoin is by making block propaganda to distroy the image of bitcoin but banning is very hard for them to do.