Self Interest, Public Interest
China certainly has a self interest in pushing the digital Yuan since they can track it.
But at the same time not allowing banks to offer cryptocurrency seems like a move in the public interest.Bank regulators in the West should adopt this policy as well. People view banks as a place where their money is safe, and currently they are. Cryptocurrencies are the antithesis of safe. Too many uneducated people, let's call them Muskovites, see them as an investment with no downside.
Having said that I do have cryptocurrency assets but they're about 0.5% of my net worth and I view it as I would gambling or sports betting.