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Because of it's inherent volatility?Bitcoin would be an awful sovereign currency.
No, mostly because they can't print more of it. Money is a political and psychological object. Bitcoin has good reason to be a proxy for value, but it would be a poor tool for exercising monetary policy. It matters to a country that they can influence the allocation of resources and effort, and control of their currency is one way to do that effectively. I do think that in time, nation states will decline in importance, and that the nature of currency will reflect that, but I don't think that the technology is in place to fill the vacuum. Hell, atm bitcoin can't even make more than seven transactions per second.