If govt really wants to stable the economy then it should have focused on holding the PPP of its currency by increasing or decreasing cash from the circulation. But what govt doing is adding more paper cash in circulation. This will never solve the inflation problem.
No, government should not be in the business of modifying their money supply. It never works. The centralized authority that the government-backed banking institutions have, at the direction of the federal reserve or whatever financial body, have proven themselves to drive economies into downward spirals.
The inflation pre-Ukrainian war was a result of money printing and COVID lockdowns. Government knew they could shut down the economy if they just asked the banks to print more money.
There is some serious setback to a fully decentralized economy. How you will implement law and orders in such an environment where no one is in control? Hackers and Drug deals have been made through privacy cryptocurrency nowadays. Money laundering, arms dealing, terrorist funding, and target killing can be easy through privacy cryptocurrency. There needs to be some involvement of the government to maintain law and order to prevent any negative activity.
The government has failed to stabilize the economy but that doesn't mean they can not. A semi-decentralized economy should be tested to get a better result.