I think the government is not afraid of bitcoin. But because they don't want any other currency that can change their country's economy. In fact, cryptocurrencies are a free type of money and no one can control them. So the women themselves will not benefit when their people use crypto. Because we don't have to pay taxes when dealing with the government
Countries where the economy is heavily manipulated by the government will be less willing to allow the usage of cryptocurrency. China is a perfect example for this. The Chinese economy is heavily rigged, and the stocks are overpriced by a factor of 2 or 3 times when compared to the same in the neighboring nations. On the other hand, countries with strong and healthy economies (Japan, Switzerland.etc) are more tolerant about Bitcoin.