What governments can do is to forbid the conversion of bitcoin “bit’s” to currency value in order to pay for good and services. They can order it delisted from the markets and they can forbid the use of electronic funds transfers to “buy into” bit coin.
People would find out real quick that they’ve thrown their money into a swirling black hole.Governments might not be able to manipulate bitcoin directly but they can make the use of their national currency illegal for use for buying into bitcoin or converting bitcoin digital share values into recognizable currencies for goods and services purchases. There are many ways bitcoin can be strangled.
"no one is going to relish the opportunity to pay bank fees, .embrace Orwellian surveillance, "
That is hysterical. Central banks and governments are giddy with fully traceable tech like bitcoin. Orwell on super steroids.
Read this if you want to get a feel for what is in the works.
President’s Working Group on Financial Markets Statement on Key Regulatory and Supervisory Issues Relevant to Certain Stable coins.
https://home.treasury.gov/system/files/136/PWG-Stablecoin-Statement-12-23-2020-CLEAN.pdf