The government own billions of population, and by setting her face against bitcoin is a competitor, but doesn't seem to prove that they're a top bitcoin competitor without having a downward course in the process. Last question please forgive me, what stops them from building a coin on the block chain that'll bypass the total sum of bitcoin users, and regulate it?
There is really nothing in the way of competition for Bitcoin except for Ethereum. Government services such as CDBCs are hardly used if ever, and that being among the ones that exist already, and Ripple is really only known by banks.
All in all, don't expect banks to make any sort of competition for Bitcoin anytime soon. Why do you think they are buying some more?