I believe China and India are already investigating into an 'official' virtual currency.
You probably mean
CBDC, and China has gone the furthest on the issue, with several major tests among the general population - so news like this shouldn't surprise anyone ->
China’s Xiong’an New Area Begins Using Digital Yuan for Salary PaymentsThis is just the beginning, because sooner or later all countries will have their CBDC, but it is really nothing more than a digitized fiat and there can be nothing that can suppress Bitcoin as the first and only decentralized currency.
I think the chance of a huge negative reaction, like outlawing Bitcoin by some countries, is not that high, they could have done it years ago.
Of course, they could, but then as now they still think that Bitcoin is not too much of a threat - and realistically it is not if we take the number of current users and the value of all Bitcoins in circulation - especially if we compare it with the values of stock or gold markets. China has long shown its stance on this, now everyone is looking at the US and their reactions - and given their influence on most countries, any of their negative decisions would likely have multiple effects around the world.