The government is not ready to legalize cryptocurrency because they are not ready for a decentralized system, which the government cannot control like a fiat currency. indeed this will be a different matter in different countries. when developed countries are ready to use it, many developing countries still have problems with money laundering in their countries, so this is very risky against corruption by officials
Maybe that is their reason not to legalize cryptocurrency. But I am sure that soon, the government will legalize crypto so their people will have a new payment system besides fiat that they already used. I can imagine that when I buy something in a local store, the officer will ask me what you want to use to pay? Crypto or fiat?
It's not for the government to decide whether they want it prohibited or not, the people will. Laws defined by the constitution are clearly stated, basic rules like no jaywalking is still disobeyed right now, what do you think the government is capable of not legalizing cryptocurrency? They won't affect that much honestly. Merchants are the one you should be educating and promoting the bitcoin to, not the government.
We see that corruption is happening in all countries because the officials want to have money from any sources. But believe me, there will be honest officials that will work for their job, and they will always serve people better than others.
You know what I don't with too smart government official? They are too knowledgeable on how to get away with laws, they have counter part for anything coz they studied it. But I still believe there are ones who are true to their work.