Bottom line is, the more governments use blockchain, the better for btc! BTC is the door of cryptos!
government using blockchain has nothing to do with bitcoin to be better or worse for it. blockchain is the technology and your statement is like saying the more shitcoins are created (that would be using the blockchain technology) it would be better for bitcoin!
not to mention that if government uses blockchain it will be centralized and we only care about decentralized solutions here.