In the whole world I believe there are only a few governments that accept Bitcoin directly (as in, they accept Bitcoin without you needing to sell or convert it). These are in Switzerland and Austria, and even then it is not for every public service, just selected ones.
Even so, I can only read about these in newspapers, never tried myself.
It will take time, but for now yeah, all we can do is sell to fiat and pay bills. But one day...
I think that Venuezuela is also accepting it, they are adopting the use of crypto to their country as one of their way to cover up the loss the had from financial crisis, so they are checking all the possible ways for it.
Well, here in our country, people will not threat you once they saw and they knew that you are in crypto world, little by little they are realizing it is not a scam.