The government doesn't have to use it. Or like it. We don't really care what they think of these decentralized instruments. They are for us to use as we see fit and to build on top of and so far they have shown they are very useful and overall a great thing for the financial system they live in. Like you say we will find out if people find them useful but even now nearly a billion dollars is being used in defi for legal and top of the table use cases so at least some people already find it useful to them.
We are seeing a flourishing system of financial experiments being built as truly anything goes in this new digital worldwide ecosystem. Not all of the experiments will work but at least they will be tried and the market will decide whether or not they are useful and valuable to this digital society.