A gov-backed cryptocurrency will not be any different than the current fiat system, where printing is rampant and monetary policy is decided by a group of men who think they know what is best for the economy.
"Which in turn would help keep much of the volatility out, and make it a more attractive means of exchange in general for people and businesses alike."
If you're attempting to keep volatility out, you're interfering with the free market. Central planning does not work.
Government cryptos will have to compete with the likes of bitcoin and ethereum on the international stage, and I hold the opinion that they will lose!
I just got done listening to some CEOs talk about how they love the idea of digital money, and cheaper transfers, however, they hate the volatility and for that reason btc (and many others) aren't an option. However, they said if the government were to launch something with all the benefits of current cryptocurrencies but without the big negative of massive volatility, they would adopt it in a heart beat. That seemed to be the consensus among trillions of corporate dollars...