Exactly what we initially though:
(1) They are afraid that they will lose a huge chunk of money here if people suddenly jumps on the crypto bandwagon. They are totally eliminated as third party and that will result of billions of dollars gone from their pockets.
(2) As far as state creating crypto, it won't work in the long run. People will view this as nothing as stocks or mutual funds where the government will put heavy tax on them. Russia for example has crytporubble with over 20% tax. I don't think that people who loves crypto will buy that.
1) There's no problem with people, jumping on the crypto bandwagon. With the help of the Lightning network, people and the merchants would be able to do business (buy and sell goods) without the 3rd party involved. The problem is that if the transaction is not between people but a customer and a merchant, the merchant have to book it's income somehow. As the merchant can't do it's book-keeping in bitcoin but only in national currency, there will be a need for an exchange to make fiat from the bitcoin. So it's not possible to totally eliminate every 3rd party and middleman.
2) People trust their government in developed countries, if they don't, why would they buy the government bonds to put their money in to gain some interest? (I'm talking about average people, who usues the current governmental system mostly). There are other investors on the market who prefer stocks and other assets but there will always be a group of people who will use what the goverment tells them to use. Others will be happy with cryptos but on the long run, regulations will bring tax into crypto as well, most probably.