Undoubtedly governments will continue to try to regulate crypto. Will they be able to fully succeed, that is the question. In principle, people don't need their permission or approval to use crypto, and nothing prevents them from using it explicitly.

And here I disagree with you. Fiat forms of money are already being rapidly superseded by the digital version as more and more people pay with plastic cards and mobile apps. The proportion of people still paying with cash has been decreasing every year and will continue to decrease. And since fiat is practically impossible to control (just try to track the movement between people) and is 100% anonymous (there is no binding of banknotes to a specific person), then with the departure of fiat, society's finances will turn out to be more controllable and traceable.

Actually, it's quite predictable. Nothing good is expected, because it is not profitable for governments if people use crypto on a massive scale. Therefore, they will prohibit, limit and demand taxes from this.