It's not down to the government to decide that. Bitcoin is non-negotiable. It's money you can't fuck with. If some citizens, not necessarily all or most, because if they were most, they could overthrow their government, but if some citizens want to own bitcoin, there's nothing preventing them so. Granted, the government can disincentivize them, with fines, taxes etc., but in the end, they don't control it, in the same way they don't control alcohol.

I'd be this doubtful for the citizens instead. What's the last time you witnessed a friend or relative who's annoyed by the fact that he holds no custody over his funds?