Yeah government involvement has both positive and negative effects so i have neutral opinion about it and secondly i think gevernments of all major countries will soon start developing their own stable coin which will be fully regulated and taxed so the real decentralized cryptos like btc and eth will gain even more value and demand because of their truly decentralized nature and being free from control of any govt or institutions.
You have a point there, I have never seen it this way because I have been worried about the way government is planning their own cryptocurrency, they will actually create a stable coin, which indirectly mean that people can still use both government's stable coin and still use bitcoin for their anonymous transaction, and really, government coins is going to be centered ion centralization, and only bitcoin would still remain the most decentralized coin that we have in the market, and I think that this will really make bitcoin have more value.
It is even a good thing that they are creating their own coin, it will at least divert their attention from the hatred they have for bitcoin, and they would not think of coming together to declare ban on it.