I don’t think decentralization will spread over to any aspect of society, you will still need government services for most things:

• Healthcare.
• Police.
• Jurisdiction.
• Education.
• Military(no military only works, if no other countries has it, but if one country starts building militaries again, the others have to do it too, or they can be conquered easily).
• Social services.
• Basically everything the government is now doing too.

Except if they loose their monopoly over money, it could actually make societies more strong again and where decentralization really brings in huge benefits.

It’s the same now in most countries, your employer will probably deduct taxes beforehand and you will only get the taxed amount payed out. Just like now, because otherwise the state would start closing their business. The difference with decentralized money will be: No one can confiscate your already taxed money, or make it worthless over time. This is huge, if people had this in the past, the whole course of history would probably have been different.

They will tax people, there’s a saying: only two things are certain, taxes and death. Even if the state looses their power temporarily and a vacuum forms, after some time a new state will probably form again. We can’t escape this.