They can't separate blockchain from bitcoin. Is it possible that they will start using Bitcoin for money transfers ?

That will increase transfer rate and will be helpful in stabilizing BTC. Why not promote this idea of 'secure and fast transfers'
Do not be so sure of that. If the banks develop their own version of the Blockchain and they get the governments to enforce it, we would be in trouble. Bitcoin would be banned as a currency and the merchants will
not be allowed to accept it as a currency.
Governments can still ban BTC. Why do they need to wait for banks to develop such system ?