Bitcoin will always be Bitcoin regardless of whatever country switching to a Crypto-currency and I seriously doubt any country or union would expose their Blockchain to State manipulation or allow any random Joe-blow to mine their blocks.
Then there is no need for a blockchain. The blockchain is the very expensive cost of having a decentralized network. There is no point to a centralized decentralized network with no of the benefits of decentralization and all of the costs.
State digital fiat money already exists. Take your existing bank accounts, add the ability for users to send funds directly to each other, eliminate cash. Done. No mining is even necessary.
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user friendliness is also another big problem with Bitcoin and is preventing a lot of people from adopting it good luck getting a store set up entirely on your own without any outside help from programmers who know the code required to make a store. 
