I think it is really simple. As technology increases the government needs to keep up. You cannot expect to still be issuing out fiat when everyone else is doing it digitally. It will be very interesting to see how this is all dealt with and how things develope as time passes. It has been 10 years already and so much has changed. The future is very exciting for us
Yes, they need to keep up
What advantages and benefits will creating another currency in addition to an already existing one provide to a government? And please note that modern fiat is already digital for the most part anyway (the fact which I mentioned straight away), and it's been that way for a few decades already
To add another problem on their sleeves, maybe?
Governments are insecure on everything that surpass them, and one of those are cryptocurrency (Bitcoin, to be specific), and creating a coin of their own doesn't change the truth that they can't make one (like bitcoin), the result will be the same, they could only make Altcoins, that can't go to bitcoin's level of complexity to become invincible. They just don't know when to give up.