For now it can't be said to be very important but the presence of cryptocurrencies gives great hope that anyone has the opportunity to earn additional income with the presence of cryptocurrencies, countries that legalize cryptocurrencies are proven to be able to make many citizens able to improve welfare.

I think we (the crypto community) went a bit far in praising the crypto , while in real world crypto adoption rate is too slow. Its not some kind of fundamental technology that is necessary for Humans. Fiat has its owns pros n cons but government will stick with it despite all odds.

Crypto currency is some how over rated is am to speak from the government angel in terms of being essential for economic development of a country. Though private individual in a country are using crypto currency as a source of income but the proportion of the population can't be compared with those who are not earning anything from crypto currency and that is why one cannot say that crypto currency is essential for economic development of any nation.

It depends on a country, its current economic state and the way cryptos are used there. El Salvador made the first strong attempt to adopt cryptos as payment, as well as create favorable conditions for crypto businesses. Given the terrible economic state, it was worth the risk because this country is in a desperate need of some boost to the economy. Ukraine hasn't fully adopted cryptos yet, but it plans to do so because it also wants to improve economy this way (although not as much by using Bitcoin as money; it'll focus on regulating crypto businesses and adopting blockchain for various purposes). Developed countries aren't rushing to adopt Bitcoin or other cryptos because they are doing well and don't want change because change isn't always for the best. For China, Bitcoin was a threat because it's a decentralized form of money that cannot be controlled by the government, so they decided to restrict cryptos as mush as possible, since China loves being in control.

Can't say about the future but till date crypto has no role in the development of the country. The primary reason is that governments don't want to legalize decentralized crypto in their area of jurisdiction. Crypto is mostly popular among its community members and wasn't able to make any significant impact on mainstream payment methods. So the answer is negative for your query.

It does nothing. The growth of a certain country is heavily reliant on the number of resources it has and it was able to utilize, the amount of graft and corruption in its government, and its education system. With all these three met, expect that a country is to be considered developed. In the case of bitcoin, or even any cryptocurrency for that matter, I don't see it being a direct assistance in any of these sectors to better a country's growth and development. So individually speaking bitcoin could do wonders for people, but you can't expect cryptocurrencies to help a country out of the mire it is in. Profit is just one aspect to a multitude of sectors. Jobs are met if education and medicine system is taken care of. Profits and livelihood is achieved well when there's no corruption within the central government. I think you are only speaking for a certain individual which I would assume was yourself when you thought that a country investing in cryptocurrencies would help them develop more as a whole. In actuality I would call the leader who does this nuts because you can't just input the cumulated tax of the people for a gamble like cryptocurrency in the first place.

I wouldn't consider it really essential as to some countries can really live off without cryptocurrency around, as for the underdeveloped countries, cryptocurrency can be beneficial but not entirely essential, it cannot remove poverty, it can only improve one's status.

It doesn't hinder a country's development but it can potentially be of help, specifically for the citizens.

Essential No. But useful yes.

Both can happen. I would like to draw a similarity with science which can be both a boon and a bane depending on the person who is using it.

It also depends on what your idea of "Development" is. Technological advancement does not always mean overall development. Of course blockchain tech development is being used in many industrial sectors and banking so blockchain gets an upper hand over what traditionally crypto has been known for. Most governments have been pro-blockchain but anti-crypto.

For the overall development of a country, I feel crypto has a miniscule role as of now. If the economic impact of crypto becomes bigger, we may see changes.

yes if the government will accept crypto with open hands , sure this is very essential.
it is , the decentralization will help each country developed independently .
damage can only take part once abusing comes and that is depending in the capabilities of that said country
to enforce law and rules.

From the current position, we can say that cryptocurrency is already playing a certain role in strengthening the state's economy. As far as I remember, the Japanese government noted back in 2018 that thanks to the cryptocurrency, the well-being of citizens has increased and this, in general, has a positive effect on the economy of the state.
However, in other aspects, cryptocurrency is unlikely to have any noticeable positive impact on the development of the state.