For instance, Bitcoin should be recognized by law and regulated in the way that people would be allowed to demand the return of their stolen coins in court, be able to pay their employees in bitcoin without being accused of giving out worthless substitutes of money. IMO if government demands taxes to be paid on the coins that you hold they should allow for these taxes to be paid in bitcoin.
Disagree with this from a practical perspective. You can already pay with an alternative asset / bartering if you come to an agreement with the person you're paying. If the person doesn't with to be paid in Bitcoin I think it's more than fair if they don't. Also from the tax perspective, it's absurd, do you expect them to allow for the payment of taxes in shares and property which they then have to dispose of? Not to mention that one of the economic advantages of tax is to be able to drive up demand for your currency. There is little benefit for individual nations to drive up demand for Bitcoin.