I think an important factor in this story is whether or not the digital currency is a separate entity from the crypto-currency. In general, they are one-in-the-same but if I'm reading your post correctly, we both are saying that Digital Currency that is in the hands of/traceable to/influenced by the Government will lead to more control, more oversight, more power to the Government. I can easily see a world where the government and the banks confiscate all paper currency and basically give us a government issued debit card and bank account that they control exclusively. On the other hand, digital currency (or crypto-currency) that is decentralized and block-chain based can not be controlled by the Government (at least, not to my limited, neophyte knowledge) and this is a true Paradigm shift. I recently heard someone who was talking about Steem yesterday declare that money can easily be moved or transported world wide with really nothing more than a good memory. It is the knowledge of the password that enables currency to move. That has major implications across many disciplines.