You never know what a government can do. Sometimes they say that they dont try to prevent btc. And sometimes that say they will do some regulations etc. But still, i think even governments know they cant ban it. People will always find a way to buy bitcoin.
Absolutely. I think the only thing they can do is declare that BTC is banned. Providing Bitcoin users are reasonably careful, a government can't neither trace nor prevent BTC transactions. What they
can do, however, is they can block the websites of certain exchanges. That's it.