If everyone has collectively lost trust in their government to the extent that they no longer believe their government will not hyper-inflate their currency on a whim, the average individual under that government will have much bigger problems like "how do I survive all these bullets while my nation-state enters anarchy". We haven't switched to exchanging gold for groceries even before cryptocurrencies entered the picture, so I don't see why we would now.
Sure. I'm just not totally sure there's a meaningful point at which you trust that your government won't hyper-inflate your currency but you don't trust that the existing monetary supply is real, i.e., I don't think that it helps anything to have cryptographic proof of the government's existing monetary supply.
