So many anti bitcoin laws and policies that seek to undermine the existence of bitcoin have been made by government and countries all seeking the centralization of currencies within it region and since bitcoin is a decentralized digital currency most government are against it.
What I believe here is, Fiat is under the control of the government and they have the ultimate power to control their citizens. Secondly, fiat is being issued under government control whereas bitcoin is a decentralized digital currency, which cannot be controlled by any government.
Thirdly there is limited trackability of bitcoin as compared to fiat. Yes, it's true that most governments are against bitcoin but what I believe here is that strong legislation should be done in order to the utilization of bitcoin under the government's regulations.