The very first thing to understand about Bitcoin is that its store of value function is at least an order of magnitude more important than its payment or remittance functions. Very roughly speaking, something like 90% of the value of Bitcoin is in something the government cannot possibly replicate without relinquishing control of the money supply. They could create digital money, but that wouldn't touch the lion's share of Bitcoin's value proposition.
I agree with this, but I think a better term for the value proposition is "neutral money", instead of "store of value". Bitcoin eliminates trusted authorities. If the system has trusted authorities, it does not compete with bitcoin.
I wrote a short article about this here:
https://gist.github.com/weissjeffm/ab8e157e7d7943b07310