Governments actively cooperate with different companies to implement blockchain technologies, which is good but they also try to create and implement CBDCs. CBDCs will completely destroy financial freedom because you won't be able to pay outside of CBDC. If you upset the government, they'll completely block your access to your finances. Today we live in a time where people only care about themselves and today is the worst day to become dependent on others for your needs.
That's true. The real killer of privacy is the replacement of physical cash with CBDCs. Government regulations of crypto can be ignored by using privacy coins and there is little that governments can do about transactions that are using XMR or other privacy coins. However the real problem is that in the end one needs to buy physical goods and services and in order to do that he needs to use fiat and when fiat is in the form of bank money (credit/debit cards) and CBDCs without any physical cash, at that point there is no privacy.
I believe that in the next few years, privacy tools and coins will not be as widespread and easy to use as they are today.
Even if privacy tools remain, the benefits from them will be quite limited because sooner of later one needs to convert crypto to CBDCs in order to buy services and goods.