This is probably the case, because cryptocurrencies have been showing excellent results for several years now and are attracting more and more money. Banks are used to owning money and for them cryptocurrencies are a new niche that they definitely need to curb. However, there are a number of problems, for example, how to get the owners of cryptocurrencies to bring their cryptocurrencies to the bank? Maybe banks want to make their own cryptocurrencies? It seems to me that these issues are very important and banks are likely to influence the crypto market trying to take possession of all crypto assets.
I doubt that they mean to issue cryptocurrencies. Digital currency is a completely different thing. The fact that the initiative comes from the Central Bank already tells us that it won't be a cryptocurrency, it won't be blockchain-based, won't be mined, and will most likely be fixed to assets. It looks to me more like an attempt to take control over the situation. The banks probably see the advantages of the crypto and feel threatened, so they came up with a supposed substitution, which, they hope, people will buy.
Banks have no intention of taking over the cryptocurrency market or creating their own cryptocurrency. They want to take advantage of blockchain technology and transfer their common central bank currencies to this technology and create their own digitalized currency, i.e. national stablecoins. Therefore, indeed, in the near future, most states will release their digitized central bank currencies and they will have almost nothing to do with cryptocurrency.