Banks and governments accepting cryptocurrency as a mode of payment is fine as long as they don't regulate it. The technology of the blockchain is improving that it will be able to provide the security that we all want.
Of course they will regulate it. The crypto space won't be allowed to regulate itself. Not until the bankers get their hooks in it, then they will regulate it by lobbying politicians so it seems gov't is regulating it but in reality it's the power players in the financial industry that are really making the rules. As it has been so it shall be.