I always think if a big country like America or China makes their own digital currency and has the same system as Bitcoin (develops its own blockchain system), then the digital currency of that country is recognized as a legal digital currency and is used for digital transactions by all countries, then I thought what would happen to Bitcoin and cryptocurrency, would Bitcoin and cryptocurrency survive? or even Bitcoin and cryptocurrency will become legal too?
We have every reason to believe that if big countries were to create their own cryptocurrency, the system using that new digital currency would be no different or would be even worse than the fiat system we have today. That would become a splendid occasion for further adoption of bitcoin. Sane people have already lost trust in government-issued money and switched to the use of bitcoin in their everyday transactions. Some of them have recognized bitcoin as a superior store of value, an effective instrument for protection from crises, recessions, high inflation, and negative interest rates. No way would they give up their bitcoin once again in exchange for pseudo cryptocurrency, which has no advantages whatsoever.
Governments will try to compete with bitcoin and they will fail again, no matter how advanced their blockchain will be.