They're fearful because they are intelligent. If the US government was that intelligent, we would have less problems in the US. Rather, for now the US government is fine with crypto being legal. I like crypto, so I prefer this... however, it also flags to me how ignorant my government is.
A government which funds itself by using inflation and debt, permits other currencies to now exist and thrive inside its borders, which are anti-inflation currencies. If they allow that trend to continue for 20+ years, it is not rocket science as to what results from that. Meaning, my government does not understand how it sustains itself.
Think of how silly this is. The congressmen we elect, do not even understand the Federal Reserve System well enough to realize that money-dominance is the only thing that keeps our government spending afloat, so they wont even protect the one thing keeping the government from going into total financial collapse.
There is a lot of debate between people, is it a conspiracy? or is the government just really stupid? Crypto is a point toward the government stupidity argument.
Every government using a nationally issued fiat currency to fund itself, should be anti-crypto. The ones that are not, are either stupid / near-sighted, or they are fine with the self-destruction of their government's financial solvency.
be thankful that they are stupid.
IF we are lucky crypto will become established and act as cushion when fiat collapses.