There is indeed nothing wrong with taxes used for public services in a smart way. It helps all individuals and society as a whole.
Problem is with a decentralized payment system governments will lose track of payment flows and it will be much more difficult to tax. Possibilities to dodge taxes will be endless.
Bitcoins ledger is public and any transaction is saved forever. There isn’t more transparency than this. Not good to evade taxes/ criminal activities as the proof will be there forever for law enforcement. It will be hard for criminals to hide evidences, when the police will check them in person. They already have all the tools in their disposal to spy on citizens. Even networks like lightning aren’t completely private and there can still be evidence found there, if they really check criminals. Pseudonymity of Bitcoin is good to protect regular citizens right to privacy, but it won’t hide real criminal activities. Police will have enough evidence to work with, that can’t easily be destroyed. Also most Bitcoin is linked to some real id on centralized exchanges, this completely removes any privacy and is a real problem.
Also it will be very hard to perform efficient monetary policies when there is nobody in charge of the macro economic movements. Money printing can be a bitch but it can also give air to your economy
Let me bring in the counter argument again. Let’s evaluate monetary policy first. The end result is always printing more money and delaying problems for generations, which makes them worse, than just having solved them earlier. It never really solved a problem in the first place. Japan has delayed it’s problems from the last century till now. Now they’re bigger than ever and broken beyond repair. Europe is in the same boat now.
Who is doing the policy?
Some people in backdoors that haven’t even been elected, there’s no way to hold them accountable for anything. You can’t vote them in or out, there’s also no realistic way to go to court against them.
Are they really that capable?
I doubt it, there’s no solved problem in their track record. Their criminal record is bigger than actual work being done. Let’s not look at, if they seem knowledgeable or professional, but just at their track record in office: there’s nothing to show, except broken rules, criminal activity that isn’t punished and having made issues worse.
What is the result?
Entire governments/ corporations became dependent on printed money to pay for their expenses/ to not go bankrupt. Bailout after bailout. They’re not able to survive in the free market anymore. It’s like someone being on drugs. We left economics and entered central planning. Which every economist knows is a sin that is dangerous. You can’t heal a drug addict by giving him more drugs for generations, problems have to actually be solved.
If we keep in mind now of who is actually running monetary policy, what is safer? Putting them into a train that they can’t control themselves, but is on a safe track - or giving them a sports cars that they can drive into any direction they want, but we know they won’t follow any traffic rules when they don’t want to. Which of these two options is less likely to crash? Which of these options will be safer to the population?