If countries legalize the use of Bitcoin for transactions, I am sure that the number of people choosing to use Bitcoin over fiat for their businesses will increase, especially those who are constrained by distance and currency differences.
It is true that the government is one of the barriers that prevents businesses from accepting bitcoin and prevents people from using bitcoin as a payment method. But it is also uncertain that if the government legalizes the use of bitcoin as a payment method, people will increasingly use it instead of fiat.
Like in El Salvador, bitcoin was even legal tender many years ago. But according to many reports, people there do not like to use bitcoin as a currency and for their daily payments, they still prefer to use USD.
That shows that governments are not the biggest barrier preventing bitcoin from becoming a popular payment method.