I have not really seen the need for government's involvement in Bitcoin or Crypto-currency. If government should introduce some form of regulations in cryptoccurrency, then the essence of blockchain technology will be forfeited. And there will be nothing like decentralization. Although fraudulent activities from bad eggs in the crypto space is the reason why people are glamouring for regulations
Partner between State and Crypto would never work. But the state using Blockchain technology, as it already uses in Brazil to store identifications, would be something wonderful.