Bitcoin will keep on going with PoW because it's the most secure consensus algorithm.
Some governments still fear that their banks will get their doors closed if cryptocurrencies gain a lot of attention in their country, so these governments try to catch the painful nerve and here, it is mining. They had nothing to talk about, they don't talk on the inflated prices of oil, child trafficking, sexual harassments, kidnapping, raping, extortions, mafia, etc. and divert their citizens' mind by talking all the way about crypto to create negative chaos among youth about it. If Swedish government asks miners to stop mining some day, those miners will pack their bags and move another place to continue.
I doubt that the banks will close even if cryptos gained too much attention on their particular countries. There's the fear that they have but that won't stop and make them close as they're with the state.
There's still a big part of the banking sector that's being involved to the government's work. I agree that if these countries will make the miners stop what they do, those crypto friendly countries will be the ones to enjoy and benefit from it.