Many countries are to issue digital currencies in their own country, and the Government will consider more. The legalization of the Bitcoin is just a problem. Perhaps there is a better currency than Bitcoin technology.
Bitcoin is decentralized compare to fiat currency so I don't think any currency is better on a decentralize platform, well the government also know this one and that is why they are making necessary moves to stop people from knowing Bitcoin. Yes, they'll create their own digital currency and China already doing this but the difference is that, it is still fiat money and they are still being controlled by the government. There's a lot of things to be considered before making this technology legal, thankfully El Salvador started this already.