If you can't beat it join it.......Bitcoin is truly decentralized and can't be contained. Governments know this and it's all about trying to control its development and limit its effects on their control. Long term they need to accept and support it.
An all-out ban would maybe have a positive effect on the dollar in the short term but would have a much more significant negative impact on the dollar in the long term. Once people fully understand the value of a decentralized peer to peer payment system that has a finite amount unlike fiat currency, things will start to pick up speed.