They are torn I think. Absolutely they can see the threat that Bitcoin (et al) pose to them. they pose the threat mainly because they represent a superior technology and way of doing business. "You can't stop progress". It is true that some ideas you can't stop and I think this is one of them. Dave makes the point about this being eagerly embraced by young people. The FUD is enormous (put off most of the little people while they get into the market), whilst at the same time they are seriously discussing regulations of the industry and taking steps to incorporate it. Mark Carney, head of the Bank of England, has called us "fools". Well time will tell Mr Carney.