Depends what the meaning of "destroy" means. They can "destroy" the value in a flash. They come out with FEDCoin that can be used everywhere, can accommodate the massive real world liquidity and transaction rates needed. Bye, bye Bitcoin value.
nope. what that will do is give all electronic currencies like bitcoin more credibility.
that’s like saying the usps is going to (back in the day) come out with its own clunky version of a fax machine, which will bury the fax machine. it will have some advocates, for sure, and that’s great....competition is good.
but once the government endorses the concept of electronic currency like that, bitcoin will become much more widely accepted (if not understood). and then it will be seen correctly as untethered from political control / fed policies.