Governments frequently misunderstand bitcoin innovation.
This impression arises from the disproportionate bans and regulations they enact.
Although occasionally the bitcoin regulations appear unreasonable, I posit that bitcoin is not as detrimental as suggested. Please correct me if I am wrong.
I think the Governments negative stance towards Bitcoin is rooted in concerns about losing control over their national currencies and potential risks like unregulated criminal activity. El Salvador has adopted Bitcoin because of its benefits while many other countries are still undecided leaving transactions mainly unprotected. I also thing Even in the face of sanctions by nations like China the increasing global acceptance of Bitcoin implies that such initiatives won't impede its ascent. Bitcoin value is anticipated to increase because of how rare it is compared to official money.
Losing control of the currency means losing power and risking subversion, which is what governments fear if they accept bitcoin as a replacement for fiat. The government is a centralized collective, while bitcoin is a decentralized system where power is divided equally among everyone, which is actually harmful to the government.
El Salvador has accepted bitcoin as legal currency but they have not yet removed USD from the economy, this shows that they are still cautious and do not completely trust bitcoin as we think. Furthermore, much of what El Salvador is doing is treating bitcoin as an investment instead of viewing it as a currency.