The interest of people in using Bitcoin as a means of payment for their purchases will barely have any impact on the matter as long as the government of a country isn't ready to allow them to do that. Merchants wouldn't be able to accept Bitcoin or cryptocurrencies for their businesses if there were legal consequences to that. Such things don't exist in some parts of the world, however, in other parts, the governments and authorities are completely against Bitcoin.
The reason for that is simple, they know if they allow people to use Bitcoin for their payments and purchases, they wouldn't be able to track the finances of every individual hence they will have no control over it and they don't want that to happen.
Actually, governments can track and trace the finances of each individual. They can either analyze the Blockchain using a block explorer, or hire a surveillance/analytics company like Chainalysis to do the job. Bitcoin's transparency is the main reason why most criminals avoid it in the first place. But if you're talking about privacy coins like Monero and Grin, that's a whole different story. Things are now worse with institutional companies buying all of the BTC.
You will eventually lose your freedom and self-sovereignity if these giants dominate the industry. That's assuming you sell your BTC to them. Holding coins at CEXs is also a problem because you don't fully own your BTC (not your keys, not your coins). Self-custody of BTC is the only way to safeguard Bitcoin's original values. Hopefully, more people would get educated about this before it's too late.