I don't understand tech well, but I understand people, and I saw this coming from the beginning of my involvement with crypto (as more than an observer) when I joined Steem in May 2017. All of crypto seemed to talk about the inevitability of Bitcoin blowing everyone's minds and becoming adopted by the masses and I was thinking "Well, the institutions are either going to trample this out or adopt it and force everyone to do it their way." I'm just here for the ride and to help make it as un-awful as it can be with my limited capacity
I won't be surprised in the slightest if holding a privacy coin becomes a crime in the near future....I also won't be surprised if these countries all fall apart before that happens.
The ideal is probably somewhere in between where they lose their monopoly over control but don't completely fall apart and are forced to back off a little on the individual to avoid fastening their own downfall....all as better alternatives to the nation state are simultaneously built, both intentionally and unintentionally. There will be worse alternatives popping up too, but I guess it's out job in crypto to push and make sure fewer resources flow in those directions.