if governments are threatened by crypto developments, they can just ban everyone from using crypto. This action can be done by issuing regulations in the country. I think crypto has a positive impact on society, financial needs can be met in various forms that exist in cryptocurrencies. For me the government does not need to interfere with this digital currency, maybe in the future crypto/blockchain technology can have a more positive impact not only for its users but also for the international economy.
The mere fact that cryptocurrency is a decentralized platform it only means that the government has nothing to do to interfere to digital currency. I think the thing that a government could do is to prohibit their people form engaging in digital currency because for sure the main reason why they did it its because the government has no power to control it and by prohibiting cryptocurrency in the country but I don't think so it could really affect the crypto market. Cryptocurrency is really a big help to everyone especially at this time of pandemic and this could be a great help in the economy of a certain country.