bitcoin serves same purpose as a currency that is of the people, that is created by a man or group of people that are concerned about the welfare of the people and that is at the same time created to serve the needs of the people and cover for the lapses of the government. a society, individual or government that believes and preaches democracy should natural want to adapt bitcoin since it aligns with her vision.
Not withstanding that democracy is about the people's government but it is not as you have conceived it regards to bitcoin, finance and money. Government has a primary responsibility to protect the people and that involves their property, security and money or currency. Therefore, it is of exclusive reserve for the government to control these listed element. If government "folds her arm" and not regulate finance then it means there is going to also be confusion and democracy is not of such tenet. So one of the major challenge that many government have is to control Bitcoin, they are not able to do that and that is why they mostly don't give legal status for Bitcoin at least in majority of the countries.