Re: Is this the biggest threat to BTC?

There is no benefit to a government to publish their own blockchain completely under their control.

If they want a digital currency, they can do so in a centralized way. Doing so has no need of a blockchain at all.

The purpose of the blockchain is to provide a decentralized consensus among the users.

Limiting fraud is a benefit.

There is nothing about a blockchain that makes it easier for a government to prevent the fraud of others.

It stops counterfeit money.

Any centralized digital ledger would do the same, there is absolutely no need for a blockchain. In fact, a blockchain would be a terrible misuse of computing resources for a government to implement their version of a digital currency.