My guess is that once governments start circulating their own digital currencies, they will try to crackdown on Bitcoin and other cryptocurrencies as we know them. It's no secret that the entire crypto space is largely dependent on centralized infrastructure (centralized exchanges, centralized wallet services, etc). People will not want to use something that's considered "illegal" by worldwide governments.
Centralbankcoin will make the case for Bitcoin even more compelling than it was before and make the informed want out of the conventional system more than ever. They're not letting up in their lever pulling and it'll become clearer than ever that a system they have total control and surveillance over will be subject to even more weirdness.
I'm not sure what proportion of the population will care about that but it's certainly not a proportion that's going to shrink. As for illegalising it, I can see it happening in crackpot shitholes and piece of shit administrations like India.
In better developed places it's slowly creeping into conventional portfolios. If things like GBTC wind up in millions of pension funds I don't see how that can be rescinded without there being a shitstorm. It's a bit tricky to pull the rug just because it makes you sad.
People will of course refer to the gold seizures in the 1930s. It's a very different world now. Money is an awful lot more mobile and populations are a lot more vocal and a lot less likely to fall in line.