Governments using blockchains can be very good or very scary. The transaction tracking ability can destroy financial privacy forever if used in an evil way upon citizens... at the same time, the transaction tracking ability can provide real transparency for citizens to see where their tax payments are actually going. It's a double edged sword!
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Quite true, but you can't have transparency AND privacy at the same time, can you. At the end of the day you have to decide where to draw the red lines and when you apply transparency and when you need privacy.