It doesnt matter whether goverment allow it or not,before current exchange in india were not there people were still utilizing bitcoin unless someone is fully dependent of bitcoin/altcoin to pay for his basic needs.
But still it can not be banned as many big multinational company are thinking of utilizing blockchain potential.
Even axis bank was thinking of it.
Aren't banning bitcoin and using blockchain are two different things? Few months back government banned porn sites but it doesn't entail banning the internet.
Government can ban bitcoin but still allow blockchain.
Yes govt is on the plans to ban only bitcoin and other currency and not the technology. They say if its a currency than who controls it as all the currency in the world like INR, Dollar, Euro etc is being controlled by govt so who controls bitcoin? Since nobody then govt cannot allow such currencies.