People will think i'm weird for saying this but I think Bitcoin should be linked in some way to the Government and deposited in banks, this way Bitcoin will be insured by the Government. If it were like this it would be pretty transparent, which is fine for me, most people don't need anonymity. But then again most people don't want people to know what you've bought, it's kinda creepy.
It doesn't have to be Bitcoin, they can issue their own coin if they want to but the government operating on the blockchain would definitely be a big improvement, transparency being the key upgrade. Personally I'm not fussed about anonymity and I doubt most people would want to waste their time snooping in other people's affairs.