I have the same problem with you where the country still considers illegal bitcoin but bitcoin usage is free. I don't know exactly what the government thinks of bitcoin, but i predict the possibility of one of them (government) also using bitcoin, only i have no real proof for that.
The reason i have these predictions is because,
1. Every day bitcoin transaction process in my country (especially my region) exceeds 20x transactions every day, it is also only done by me and my colleagues.
2. There is one area that uses bitcoin as a means of payment in everyday life such as hotels, malls, tourist attractions, etc.

Maybe it's all not enough to legalize bitcoin.