What happens to Bitcoin and other legit crypto when governments start to dupe the general public by creating and supporting their own "crypto" which they have full control over?

Will Bitcoin lose or gain ground? Let's think about this...

Facts:

*The general public is ignorant of why Bitcoin is a better standard

*The general public is still skeptical of all crypto

*The educated know that decentralized is better than centralized

*The government will lose some control if they lose control over the world's reserve currency

*Governments want to control their population and ensure taxes are paid

If any large government decides to create and back a new USDC, will the masses drop Bitcoin et al in favor of this "new" standard even though it is not in their best interests? A US-backed USDC could have special "check-like" perks such as reverting a transaction, reimbursements for lost crypto, etc. In many ways, it could be more user-friendly than Bitcoin even.

With so many ignorant people out there, I think it will be very easy for any large government to persuade a lot of people to stop using anything else other than the "official" coin - and yes, I understand this does not kill bitcoin, but I am just curious to see what others think will happen when this occurs. I think many people will flock to this new coin even though it will be worse in almost every way.