Yes of course there are restrictions in many countries but don't forget that BTC is legal in many countries and El Salvador has BTC as the Nations legal tender but let's explore the different views of countries on BTC and the reasons behind its potential economic impact:
Governments around the world are struggling with how to regulate BTC and other cryptocurrencies, the reasons for the ban could be many which no one can articulate except the person who banned it but here are some of the reasons I think it could be,

BTC and other cryptocurrencies challenge the existing financial systems Given that the first thing that creates a threat to the government, until now crypto is still in its early days, it seems normal to look for sustainability, the association of crypto with fraud and concerns about the safety of investors have led regulators to stay away from crypto.

The strong possibility that BTC and cryptocurrencies can play a supporting role in tax evasion and illegal activities has always raised a red flag over crypto, fueled by the Dark Web and Silk Road). Central banks want stability, but we all know that digital stability is erratic, which is a source of concern for central banks and governments, some of which see cryptocurrencies as a potential threat to their economic sovereignty.

Bitcoin legalization or BAN can have both positive and negative effects, let's start with the positive
- Legalization can increase access to finance for the unbanked. As an example I can take India, which I have visited 3-4 times (90% of villages in India are unbanked and 100 crores + cannot get in touch with public banks).
- Bitcoin makes it easier to transact across borders and can reduce fees and time and bridges like simple payment gateways.
- Adoption of cryptocurrencies allows different countries to attract investment, increase national income by encouraging mining and encourage innovation (El Salvador can be taken as an example where Bitcoin mining is rapidly being transferred from other countries and new ones are continuing to open.

Now coming to the most important part which is the downside and its challenges and risks,
- The nation can protect itself from the devaluation of the Bitcoin currency, it reduces the power of central banks in monetary policy and can lead to national collapse.
- The long-term effects of legalization are still unknown, especially for early adopters such as El Salvador (in my personal opinion, Bitcoin adoption in El Salvador has become widespread and will attract new countries as well, but we are still in the early stages, so don't forget that tomorrow, whatever Maybe we can only hope that tomorrow will be better for crypto).
- Legitimacy must strike a balance between innovation and malice