How have governments reacted to Bitcoin?

Since its inception in 2009, Bitcoin has attracted the attention of not only enthusiasts but also governmental bodies around the world. Governments' reactions have ranged from supportive to cautious and even harsh regulatory stances. In countries with progressive technologies, such as Switzerland and Japan, Bitcoin has become a recognized asset and has received legal framework. Meanwhile, in China and India, cryptocurrency faces bans and restrictions. Many countries are working on creating their own digital currencies in an attempt to maintain control over financial systems and prevent risks from anonymous transactions.