Eventually software people will work out what fiat money is - a way for a state to obtain service.
Since you need the states money to pay taxes and you need to obtain it or be jailed then there will always be exchanges. So you just regulate on the state money side of the fence and ban all exchange transactions into the states money that cannot prove their source.
Once enough people have been burned in the Wild West the fad will fade to an eclectic elite. Just like buying fine art.
And the stuff that's useful - like decoupling your account from the transaction provider - will be adopted by state currencies.
Since you need the states money to pay taxes and you need to obtain it or be jailed then there will always be exchanges. So you just regulate on the state money side of the fence and ban all exchange transactions into the states money that cannot prove their source.
Once enough people have been burned in the Wild West the fad will fade to an eclectic elite. Just like buying fine art.
And the stuff that's useful - like decoupling your account from the transaction provider - will be adopted by state currencies.