the transparent nature of the blockchain can of course easily counteract all kinds of fraud in government, now when we trade using FIAT currency, then after our money is used, the track record is no longer visible or lost, but different when you transact using cryptocurrency , transaction trace data still exists and can be accessed forever
That would be a good thing actually. Someone shared some recent development in the Canadian government using the blockchain to monitor the spending of the government and having a platform for the whole country and even the world to see how money is being spent. This transparency and accountability is something that is lacking in most of the world and most especially when it comes to most of the corrupt underdeveloped parts of the world, and I believe if utilized effectively, it would really bring about some good level of impact to the governmental space entirely.At least, if we get to see some of the government spendings being available to the public view, it would bring about some level of transparency within the system of governance and we will get to see things being done differently than it used to.
I suspect any politician will allow that 
lol. Yes, this may be the reason why most governments are not ready to adopt blockchain technology (please note: not adopting bitcoin has different reasons from ignoring blockchain technology). Basically politicians hate transparency.