Some may fear that a government-issued cryptocurrency would eventually supplant Bitcoin. This is absurd. It merely substitutes a blockchain for the wire transfer of a fiat currency. It precludes a really free exchange of value between any two random locations on the planet without the intervention of a third party. A government-issued cryptocurrency will inherit all of the fiat currency's flaws. It will squander energy as a result of perpetual inflation and regulation.
What are your thoughts regarding this matter?
Like what I previously mentioned, this totally defeats the purpose on why BTC was created- which is to experience financial freedom without having the need to rely on third party consensus in handling our transactions.
Remember that the government wants control over its processes and finances. Anything that threatens or halts their power of control is a sign for them to actually have complete control over something. While this may be beneficial, it also has its disadvantages. Since we are also discussing about cryptocurrencies, it is definitely better that no one controls over it.