I don't think the governments want to battle cryptocurrencies so much, because you are trying to deny a common public interest (it's growing everyday) which may harm the government in return (that depends of course how much power it has).

Countries that try to go with cryptocurrencies may start to gain financial momentum, because they would be one the first ones to properly integrate cryptocurrencies.

Small countries have this in favor like for instance - Binance moving to Malta because of regulatory reasons. For big giants like the US it is much harder to do and big companies like PayPal dislike crypto as they see it as a threat (former CEO calling crypto a scam).

Overall the masses for sure dislike the government, but a middle ground will be reached with this technology eventually.