There may another reason. Governments just can't stand any type of currency that they can't take away from you. If they can't steal it, it's of no use to them.
Unless people get out of the "this is for investment," mindset, any type of currency is useless. Currency, crypto or otherwise, should be portable, easily used, and easily converted into local currency, or be accepted as something better than local currency.
Imagine taking your steem dollars, or lite coins, or bitcoins and using them to buy a book, a cup of coffee, or even a pair of jeans.
I would love to be able to spend my steem on gas for my car, or a coke at sonic, or a burger at Whataburger.