China as a government will not lose anything especially their monetary control will be in their hands and country like China never want to lose that so only loss can be felt if many other government adopts the bitcoin system and china will face difficulties in the international trades but here we are too far from reaching that status.

For people its a loss from investment perspective as well as the dependency of bank for all their payments and we know China is pushing their CBDC as an alternative with that there is no change at all just only the technology switch not the real benefits of blockchain and p2p.