If you ban CEX worldwide, crypto it will still usable peer 2 peer. But of course you'll kill 100% of the crypto using public ledger.
And privacy coin will trive, Monero will become the new BTC, Dero the new Ethereum and that's it the Defi and NFT will still be there but they'll be running on Dero instead of Ethereum. So banning public crypto is a lose for government because they'll lose the traceability but crypto will be still here protecting people from government tyranny.
Is there any coin can't be send via P2P? that's really a shitcoin. Public ledger is just a public ledger, where anyone can see address, transaction, balance and other public information.
Nah Monero is Monero and it will not replace Bitcoin because both of them are different, you can't track Monero transaction in a public ledger. Government can ask the centralized coin CEO to give them access, so they can still track the coins without CEX. But for decentralized coin, the government don't have any way.