I suspect that it's not just about being control freaks. They won't use bitcoin because they already plan how to rug pull each other :)
And it's just not possible with Bitcoin.
That's why the whole thing is probably just about leaving dollar standard.
So you're probably right that they won't run bitcoin standard.
My reasoning was based on an asumption that they actually want to cooperate in an honest way. But we all know that it's not what states do.