I am thinking about this.
Step 1 - banks discover blockchain - Checked.
Step 2 - banks integrate blockchain internally - Checked.
Step 3 - customers will have digital wallets from banks - Not there yet.
Step 4 - banks integrate privacy coins internally.
Step 5 - customers will have privacy coins in their digital wallets from banks
I'll make an assumption - but these statements are somewhat misleading. Let me explain !
Step 1: Banks are opening up blockchain. Verified. - Banks use part of the technology but not a blockchain of general use like bitcoin or etherium.
Step 2 - banks integrate blockchain internally - verified. - See above - only for limited purposes, and within private blockchains.
Step 3 - customers will get digital wallets from banks - not yet. - They won't. More precisely, they will not get a cryptocurrency wallet in the classical form, for example on the bitcoin blockchain. They can get either a CBDC or an address for deposit/storage of cryptocurrency as some kind of asset or surrogate, but not money.
Step 4- Banks will integrate confidential coins internally. - No. This is against the regulations of all central banks. There will be no anonymous transactions within the state run banking sector. No more than the CBDC will allow. Now the entire financial system is actually fighting the alternative and anonymous financial system that cryptocurrencies have become. And the state always wins, as it creates laws.....
Step 5- Customers will get confidential coins in their digital wallets from banks.- To summarize the above - understand that this item will not happen either.