Future of Ethereum

What is the future of crypto in relation to centralized currency and government adoption?

After researching many crypto currencies, especially ethereum, I can appreciate the liberties that it offers not only as a store of value, but also the freedoms that it provides when considering smart contracts, the additional dimension of value it provides for things like NFT's, as well as the decentralization of currency. Although decentralization can be seen as a pro, it is also a source of my cautiousness when deciding to invest in it's future.

What is stopping a government from banning the use of crypto for transactions? or alternatively, what is stopping one from simply creating there own centralized version and therefore making others obsolete? China issued a warning about this very thing, saying they do not want crypto to disrupt the broader market due to is volatility (Because of the very fact that it IS decentralized which increases volatility) and am hearing news that they are creating and testing there own which may nullify the other cryptos due to a lack of government adoption.

I guess the source of my worry resides with the very thing that makes it so attractive- the fact that it is decentralized may lead it to it's downfall, or at least stifle its growth long term.

If anyone is more experienced in this field, because I can admit that I am not, I would very much like to be educated on how this may not be an issue in the future, because I can see how crypto in general could revolutionize the way we use currency and would like to see it succeed.