Government were never going to allow some unfettered parallel monetary system. Governments invested a lot of political capital to monitor and control monetary flows (from reasons/excuses like fraud, terrorist financing, money laundering). No way there were gonna relinquish that power.
They might use the technology itself as CBDC, but that is about it.
It was sold as new web 4.0 or whatever. NFTs were the future. Smart contracts.... And all it seemed to deliver were all mistakes and scams monetary system made in 19th century.