if you actually read the paper that the OP linked to, you'll see the word "bank" mentioned over 100 times. compare/contrast to how many banks are involved in bitcoin; zero.
"To protect against multiple spending, the Bank maintains a database of spent electronic coins."
i.e. this .gov paper is suggesting an electronic currency with a centralised database maintained by the "Bank". a central bank, basically. so while it's true to say that .gov has been investigating cryptographic currencies, it's nonsense to suggest that bitcoin is similar to what they have been writing about, because they of course seek centralisation. the blockchain is bitcoin's database of transactions, and it is so entirely decentralised that anyone who wants to use bitcoin needs to have a copy of it.
also a few links showing just how much .gov likes bitcoin:
Dutch Bank Rabobank is Blocking Customers from Buying Bitcoins
[link to www.coindesk.com
Homeland Security Calls Bitcoin an "Emerging Threat"
[link to www.scribd.com
Feds seize money from Dwolla account belonging to top Bitcoin exchange Mt. Gox; Mobile payments service won't move money to and from Mt. Gox post-court order.
[link to arstechnica.com
from personal experience, buying bitcoins is quite difficult because the banking system makes it so; it took me a good few days of investigation earlier this year to find out how to buy the grand total of 2 bitcoins, because the banking industry closes down any business involved in bitcoin pronto. in the end i found localbitcoins.com, essentially a peer to peer exchange for bitcoins that could only be shut down by closing individual people's bank accounts, rather than company bank accounts.
so, OP, i suggest it is you that is sitting in a DARPA office somewhere, as it's clear upon investigation that the government/banking hybrid really doesn't want you to use bitcoin, because it allows you freedom from their debt money.