I always wonder how could an economy operate and run without taxes from cryptocurrencies. How could a government obtain taxes from people when people are completely utilizing a currency that is not supporting taxes. Would it be really good if we completely have our fiats converted to crypto? For me, there's always a way if our intention is good. We cannot really deny how government is providing regulation that is mainly for the betterment of us despite of some issues regarding corruption and frauds.
For me, the way we could still make it possible is to establish a local exchange wherein, if we convert our money to crypto, these local exchange could already have the portion intended for the tax of each transactions.
Yes local exchange is one of the factors that can be tax by government if in case fiat will be replace by crypto in the future. And I believe the government will not stop from taxing local exchange only if crypto will be the main currency as they will surely look for other way on how they can earn because one of the main source of income from the government is the tax.
If tax will be lowered then the government resources will be limited, yes we love to be exempted from tax but let's face the truth also that without tax our government will run or effective.