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.
The governments of the states will never switch to the use of decentralized cryptocurrency. There is no chance here. For the state to work and develop, it needs its own money. On foreign or "nobody's" money, the state will not develop normally. The national money of each state interacts with the economy of this state, and there will be no such interaction with the cryptocurrency. The transition to the use of cryptocurrency will be possible only when there are no states with different economic and political interests left in the world, or at least the states will not be united into a single union of the European type.