Prediction: Western currencies are on the way out. The US in particular can never repay its debt, it can't even normalize interest rates because it can't afford the interest. What will replace it is government-issued crypto-currency that will give them total control over how you spend money. If the Mayor of New York doesn't want you to buy soda, your currency will not be capable of being traded for soda in NYC.

The government likes it's debt. If they had (only) crypto, first thing they'd do is borrow more of it, or, if that's impossible, create it using tax-funded supercomputers, which is even worse than printing it the old way.

Yes, of course, they will have total control over the supply of coins.

Isn’t that exact opposite of what pro cryptocurrency folks usually mention? That it’s untraceable and able to give power to the common people?

I think you mean: "permissionless" and "self-custodial". Yes, a GovCoin would be antithetical to the current crop of crypto. That doesn't preclude a GovCoin from being wildly popular and useful though!

> government-issued crypto-currency that will give them total control over how you spend money

If it places controls while offering no advantages, capital will be on its way out as well, to friendlier jurisdictions.