To me, the token forms the incentive to sustain the blockchain. How would unrelated parties be incentivised to upkeep and sustain a blockchain without a reward? How would transactions be limited and protected from abuse without (token) fees?
Many of the companies in discussion about blockchain are looking at private blockchains, like what all the big banks in R3 are looking at implementing, have different needs and requirements. They don't need miners and they can create some small token just pass it around internally with each granted permission given into the network.
By no need of token, I meant those cryptocurrencies that are already established like Bitcoin or altcoins. Government can certainly ban those coins but can benefit from blockchain tech. Blockchain can exist without these decentralised cryptocurrencies.