[eru]

Most 'normal' dollars are already electronic. No need for a blockchain just for that.

Bitcoin (and all other blockchain currencies together) are small fry compared to the regular financial system, and eg banks' reserve accounts at the Fed. At least at the moment.

I'm not sure the US would be so hostile to bitcoin and crypto in general, if they wanted to move people to it? Here in Singapore our regulations are much more crypto friendly.

Btw, there's some technology in the works to make blockchain currencies much, much harder to trace. But people haven't really taken it up so far.