Why not ? As they ask us to report the profits we make with buying and selling cryptos and so pay taxs on this, they should accept the people to pay with bitcoin. But one problem is, accepting the taxs to be paid with bitcoin, or others, would mean they accept that bitcoin is a currency
Yes, accepting bitcoins for payments means strongly that government not only allows users to use it, rather encourage them to do so. And if bitcoins become authorized in a country then actually things would be much much better than just bills. I guess 99% of the shops would adopt bitcoins as payment option since the user avoids the unwanted fees and taxes.