This is very good for the cryptocurrency market. At that time, Bitcoin will once again be take off.
Then what was the purpose of Bitcoin at the first instance, It was introduced to curb centralization and explicit control of the government over native currency, Any cryptocurrency introduced by the government will about nothing but complete centralization as the name implies to Govern "Conduct the policy, actions, and affairs of (a state, organization, or people) with authority." Why would anyone want this ?
I think it will never be a good idea because surely government are only the one that get more benefited and surely they will conduct policy which is also not good idea. So that's why crypto is decentralized which is good because government is not allowed to conduct policy to it. So I think many people will be glad because they get the benefit through it that what they deserve.