there is another thing they can do(and probably is the best thing for us), instead of banning it they will propose something alike, like their own centralized coin, to steal users from bitcoin, by offering more security and better regulation, while leaving bitcoin as it is
many will just choose the gov coin and leave bitcoin to criminal basically...this could damage bitcoin enormously
I'm not sure if people prefer to any crypto coin that be provided by government, since government won't make something that can't give high profit to them. So if they really make that, the fee will be higher.
Unfortunately, BTC posses no threat to the economic system for now. It is still treated as a stocks and not as a currency, the value of it is still being manipulated and it will be years from now before the goverment will be taking about this threats seriously.
Basically the government could do nothing about it since it is a decentralized currency which means that any government wouldnt be able to put up anything to restrict it , best thing they could do will be banning and it will be absolute pointless because all you need is a simple internet to access your BTC (beauty of crypto world)
Yeah that's happening for now, no threat and still treated as a stocks. But we can't predict future appropriately. Maybe something great will be happened and government will take the action to bitcoin.