Banks have been very cautious about cryptocurrencies, so much that some banks refuse to work with crypto-related businesses even t this day. But some people think that bank-issued cryptocurrency isn't such a bad idea, after all.
Kevin Warsh, the United States Federal Reserve governor from 2006 to 2011, thinks that the organisation would only benefit from issuing a blockchain-based currency. The main selling point, in his opinion would be the ability to track and record any and all transactions performed in the system. He doesn't propose to get rid of US dollar in favor of a new fed-issued cryptocurrency, but to supplement the existing system. It would immensely help the government manage the situations more effectively.
But while the banks around the globe consider cryptocurrencies to be a smart thing, the underlying blockchain component is a lot more interesting to financial institutions and governments. A lot of organizations are developing their own implementations of blockchain for record keeping and smoothing out and speeding up the transactions.
For example, the Swiss National Bank explained that there is a major risk of bank runs in case they issue the national cryptocurrency. The main worry is about possible bank runs in such case, because the National Bank in this case become the commercial bank for the customers, instead of a last-resort lender for the financial institutions.