But mostly the reason why any government is hesitating about bitcoin is because it is decentralized and they can't control anything about it.
I don't think this is necessarily the case.
I guess it depends on which government.
- China government: yes you're probably right.
- US government: I don't completely agree. I don't think its control/decentralised nature of bitcoin that they're concerned about. I think they just don't really see the benefit of getting involved (see below).
So if we think that there are merits to a fiat system and it makes sense for fiat system to sit alongside Bitcoin, then the next question is: does it make sense for governments to hold Bitcoin as reserves?
Personally I don't think so because there aren't sufficient advantages to holding Bitcoin (vs gold) from government perspective.
- Government gold reserves are just sitting there. There's no need to transport or transfer much. So Bitcoin's advantage of being easy to transfer/transport is irrelevant.
- If governments were to hold Bitcoin, holding a single private key which gives access to their entire reserves is a bit laughable.