Yeah but if there's government coins, then completely decentralized anonymous markets to move in and out of bitcoin from govcoin are possible.  It makes the current point of privacy failure (exchanges) go away completely.

Govcoins would be really really good for bitcoin, because it would be so easy to maneuver in and out of govcoins.  And of course, literally everybody would get used to using crypto-coins.

Govcoin would be amazingly good news.