Governments would rather create their own cryptocurrencies than approve someone else's.
They might approve of other country's cryptocurrencies if they could influence it. No government can do anything with the bitcoin (in terms of control), therefore, I am absolutely sure that it will never be officially approved. The most you can count on from them is a silent “not noticing” the presence of the bitcoin.
They are now actively developing and implementing CBDC, which will be the governments' cryptocurrency, another form of money that should find its niche in the digital world.
CBDC will become the only form of money in the end. Cash will gradually fade into oblivion and that’s when the biggest “fun” will begin.
Governments don't need coins that they can't control 100%.
Exactly.
Governments of small countries don't count, as they are not in a position to influence mass adoption.
These small countries, perhaps, will be exceptions to the general rule and are unlikely to be a truly “viable” oasis for bitcoiners. Shouldn't rely too much on them.