They've plainly stated they want to regulate crypto currency, that is a step towards a ban. If they view crypto to be a threat (which any common sense government does), then they begin regulating the currency through convoluted tax law which makes no one want to use the currency.
If your left with high taxed crypto or traditional currency, no one will bother using crypto. And India has a poverty problem regardless, so there isn't any incentive for adoption. Adding in whatever regulations they can come up with will squash any crypto growth in India. Any crypto user should be against the regulation of crypto, it's one step before an outright ban.
That is a scenario that could come to happen, however governments are taking a risk as it is always possible that their regulations are ignored by the population.If your left with high taxed crypto or traditional currency, no one will bother using crypto. And India has a poverty problem regardless, so there isn't any incentive for adoption. Adding in whatever regulations they can come up with will squash any crypto growth in India. Any crypto user should be against the regulation of crypto, it's one step before an outright ban.
So in the case the demand of bitcoin was high and the government passed a law to try to control this and diminish the interest of the population in bitcoin, the population may simply decide to ignore the law and deal with bitcoin as if there was no regulation in place, now for this to happen the demand and the interest in bitcoin will need to be very high, but I think we are slowly moving towards that direction, and when that happens no amount of regulation will be enough to stop people to adopt bitcoin.
some government services or something like that which its always been the main concern when it comes to this.
State issued will really just act like fiat itself and it would really be centralized which is already expected thats why i dont see the need for some
comparison because with just common sense you could able to determine on what it is all about.
This is what we have seen in the past with countries going through hyperinflation and the government demanding that the population hands them out their dollars and gold, and the population resisted such measures, so it is easy to me to see this scenario happening with bitcoin as well.
than making yourself putting into some headache which these actions arent really that surprising at all.
Is there any other ways that they were able to fund these terrorists, if not with the Fiat? And what has the government been able to do about that? They were not even able to stop those that were funding terrorists even with the Fiat they control. It might surprise you to know that most of these terrorist groups are funded by the so called government. 
And a real state simply cannot exist with an uncontrolled financial and banking system. Therefore, you can forget about the "state cryptocurrency". The maximum that will be - a digital analogue of fiat, but with deeper monitoring, control, management capabilities for each transaction or a single cent! 
