now it's possible to prove ownership, store data in an immutable form, and even vote without the possibility of fraud or corruption. With the advent of smart contracts, Blockchain Bitcoin has become more powerful than ever.
This is true only when the blockchain underlying the crypto-currency is open and accessible to anyone, i.e. decentralized, i.e. fraud and corruption cannot occur because the network is large enough that collusion to alter the state of the blockchain is impractical.
Now, is this what a government is/wants?