government worries that people may use it to evade taxes, launder money,Or finance illegal activities.
Whereas the government could just have control over bitcoin the conspiracy theories about how negative bitcoin could be would cease to exist, and we start receiving a different stories altogether. For the past 15 years since bitcoin was created if the records are set straight we'll get to see a whole lot of money laundering and other criminal activities that were executive through the use of fiat. Bitcoin doesn't even come close. Bitcoin puts control into the hands of individuals than in a centralized authority is just the genesis of all behind governments disapproval of bitcoin.