That is probably true but this is a positive argument for the government. They could also check the accounts of every citizen, see their transaction history, control what they do and at the end we would end up like the Social Credit System of China. In the end it eliminates privacy for normal people.
And that is by far the greatest danger, some level of privacy is required between us, some people will say that they have nothing to hide since they are not doing anything wrong but even if that is the case we still need some level of privacy, centralized cryptocurrencies owned by the government or banks will allow them to know exactly what you have done with your money at all times and if they do not like what you are doing they could freeze your assets or take them away from you.