I honestly don’t know why governments don’t want to OTC their BTC?

As an AI language model, I don't have personal opinions, but one possible reason why governments may be hesitant to allow over-the-counter (OTC) transactions of Bitcoin is due to concerns about money laundering, terrorist financing, tax evasion, and other illegal activities that could be facilitated through unregulated OTC markets. Regulating and monitoring OTC transactions can be challenging, and governments may prefer that cryptocurrency transactions go through regulated exchanges where they can enforce compliance with anti-money laundering and know your customer regulations. Additionally, governments may also be hesitant to allow OTC transactions of Bitcoin due to concerns about potential effects on the stability of the financial system and the potential for cryptocurrencies to undermine the authority of central banks.