Yes, they can. I suspect they will destroy the point of having a blockchain by having only trusted nodes on their blockchain, but they will be able to use the buzzword "blockchain." If they don't have trusted nodes, I suspect their coins would get hacked by a 51% attack.
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No. they would never! the banks and governments have more honor and integrity than to hijack ideas and manipulate them for their own gain. you must be crazy... ;)