In my opinion, the move to create their own digital currency is a positive development.
It means, that the government believes the benefits gained from this technology.
With their action, they are indirectly showing to its constituents that they trust crypto.
Which will then give a positive mindset towards crypto and so it will create more demand of usage.
I consider it as an opportunity to widen the usage of crypto and not a threat.
People later on will see the difference between a decentralized vs centralized coin.
So it will be their choice which one they will use when that time comes.
You're right, but we should still look at the topic carefully. They are also more likely to trust their own crypto. Many government spokesmen also affirm that they only find blockchain technology interesting and important and would only like to use it. It is probably a little too early to discuss this topic, but thanks for your detailed answer.