Well, to be honest I don't think such ban would work well for the economy. Since bitcoin infrastructure is so strong that anyone can access bitcoin network from anywhere in the world if they have basic device with an internet connection. I fear that such bans would help to grow the shadow behavior of bitcoin and even ban will affect only to those who are using it legally. However, I am sure in next few years we will have government support at least in the major countries.
Ecuador issued its own digital currency a while ago, which is backed by assets owned by the Ecuador Central Bank. This currency can only be used by people who've been approved to use it, by the government. They had actually switched to a dollar based monetary system many years ago. The main reason why they banned bitcoin is because they don't want it to be competing with the digital currency that they've issued (I think that this is one of the main reasons why many governments don't like Bitcoin. They want to have a monopoly on the money supply when all money becomes digital, in the future). Many private companies in the country aren't using the digital currency though because they don't trust the central bank.
Although Bitcoin has been banned it's being widely used, and the ban is not really being enforced.
In that case, the government still holds the control on the currency they issues. It's just like replacing the fiat currency with cryptocurrency but without leaving the control of it. Alternatively, one of the major cause of bitcoin's popularity is, it breaks the geographical barriers. I am not sure, how governments can compete with any currency which has no barriers.
