Lets say crypto completely and utterly replaced fiat. Fiats don't exist anymore. All governments have seen the advantage of using digital currency and have completely changed their fiat into crypto, like dollar to dollar token(obviously not tether). How viable is this? For example anyone can see how much I am holding using the public ledger and track me down and force me into sending them the cryptos I hold. I wanna discuss in reality if cryptos actually replace fiat how life will be and what are the problems we are gonna face and the immediate effects of it.
World will become more transparent, before I talk about our life, I will start with government first. Many corrupt government member that will be afraid to do corruption because the transaction will be easily tracked, then there is no more bank which hold very huge of money to lend. This situation will make our economy become better because the cycle of money will be faster. Yes there will be very big leakages in money cycle but atleast less people will suffer because of pay debt interest in bank. And about our life, we will find any of our transaction is easy, fast and practical. No one can force you to send your cryptocurrency, there is law enforcement that will safe you. If you meant is government who want you to pay taxes then it will not gonna happen because the corruption activity will be less happen and country's money will be safe and people will know how many cryptocurrency that the country has, so government can't force rhe citizens to pay taxes if the country still has a lot of money.