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.
No one can actually tell what the future holds but personally, i don't see crypto replacing fiat. Both will coexist because the government derive power from the fiat due to its centralized nature. The governments can prefer to go digital currency using the same fiat which is already seen by the use of smart cards, credit cards etc.