Yeah the point of government services like a central bank or a public healthcare option or what have you is that they provide a floor of "this is the worst service/bargain you can possibly get", and then the private sector needs to compete against it (sometimes by dishonestly implying they have a better product when their product is worse, but that's its own can of worms).
For basic necessities to modern life, there needs to be a state provided minimum quantity of access, so that you can't be screwed over by corporations just deciding you aren't profitable enough, or cornering the market and price gouging, etc.
