People didn't recognized Bitcoin as a medium of exchange it is because a lot of people don't know what Bitcoin really is. The first thing that they didn't understand about Bitcoin is properties like the actual or physical properties of this currency, they didn't know that it works virtually. Volatility and other factors the affect Bitcoin stability are those reasons why people especially the government could not recognize this kind currency as a primary exchange.
In addition, there is a difficulty with paying with bitcoins and there is no technical ability to accept the payment. But everything may change after Binance and Visa jointly issue their debit card, which will allow you to pay with bitcoins anywhere in the world.
https://www.binance.com/en/blog/421499824684900479/Introducing-the-Binance-Card-Shop-and-Pay-With-Crypto-Anywhere-in-the-World