Putting in context everything that has been discussed in the thread, we are in a global context of reduction in the use of cash voluntarily by people, who prefer to pay with their cell phone or smartwatch, and the governments are smiling thinking about cashless societies in the future, or with cash replaced by CBDC, whose essential difference with cash is that governments can know what you spend all your money on.
Bitcoin and later currencies like Monero appeared as an alternative to fiat, but if laws like the draft we are talking about are implemented and measures like the one Lucius mentioned regarding privacy coins are taken:
I am in the EU, and in my country they have solved it in a way that regulatory agencies have asked all local crypto exchanges to remove such cryptocurrencies from their offer - and they have done so. I see no reason why this should not be a model that others will not follow
P2p trading will be pretty much useless for the acquisition of goods and services. I think the original idea of Satoshi, and those of us who have dreamed at some point of mass global adoption, would be to be able to spend Bitcoin, perhaps with LN or some other system, in the future for the things we spend fiat on today.
But with these legislations, even if we can acquire some goods and services, the most basic necessities we are not going to be able to acquire without KYC, and I am referring to:
1) Food. We have all at some point dreamed at some point in time of being able to pay at Walmart or equivalent in the future with Bitcoin. If that ever happens, it will be with KYC. Regarding the number of transactions discussed above, I believe that the IRS will simply use software.
Reminds me of the guy who claimed to have a trading bot set up to trade constantly all day long with a target of zero profit, just so he could send thousands upon thousands of meaningless trades to the IRS and force someone to waste their time going through it all.
I understand that just as you can set up a trading bot you can set up a program that analyzes the reported movements.
2) Shelter. Forget about paying a mortgage with Bitcoin or paying directly for a house if you have sufficient funds in Bitcoin without KYC. Maybe an undeclared rent, with the potential problems it could cause, we could pay it.
3) Clothing. The same. If you know someone who has a small store and is a bitcoin believer, maybe they will accept Bitcoin payment to buy clothes from you, but it is highly unlikely, because there are going to be fewer and fewer small businesses of this kind left.
4) Transportation. The same. You can maybe buy a second-hand car to a P2P private individual, but nothing more.