Currently central bankers are trying their own version of "cryptocurrency" to perfect the slave system. See for example, Bitcoin Cash 2022 Conference. Theoretically, bankers and governments are now able to track each transaction and can officially declare the legitimacy of it and decide in situ to approve or deny it within their own powers under the guise of "common good" or justice or whatever they want to enforce. This is the reason why ordinary people (or the audience of the conference, at least) are so afraid of cashless society.
Anyway, with the privacy coins like Monero or the Cash Fusion of Bitcoin Cash (BCH) for example, it seems that unconditionally everyone can obfuscate his own transactions. This is idiotic and self-destructive, as a matter of fact. We become defenseless against an illicit financial activity. We lose the power to track down the criminals associated with it. Having said that, the central bankers are not digging their own graves by creating a surveillance coin. Of course, not! They would never release their own illicit transaction data to the public. Of course, not! Even if data might show their own criminal behavior, they would never publicize it honestly. If one wants to compete with the central bank currencies, the Bitcoin Cash community or a would-be laissez-faire community or the anarcho-capitalists like The Dollar Vigilante should establish their own version of surveillance system to ostracize criminals. Ostracism is an essential part of an laissez-faire society (a capitalist society), as well. It goes both ways!
Obfuscating personal record may be a choice, an individual right, as long as he owns it or the system allows it. So anybody should be able to launder his money as he sees fit if available. Denying the service of obfuscation, however, is an important part of the strategy in ostracizing criminals. Criminals are the ones who have voluntarily forfeited their own rights for their aggressive behavior. There is no such thing as an unalienable right! Just like carrying a gun is an individual right and confiscating his arms is an important defense, the fungibility of money should only be available discriminatorily under criminal threats, which is always there regardless. Let's be real! As long as there are criminals on the run in the community, nothing works as promised. Money laundering service and surveillance must go hand in hand, if a society wants to adapt a good cryptocurrency (What a run-of-the-mill statement!).
In particular, currently, quite a large sum of money are used to manipulate the price of a cryptocurrency. We know who is doing. There is only one who can afford to do such a feat on a daily basis. The obfuscation service should be denied to those manipulators at the very least. Because certain popular central exchange is involved in this, it might somehow difficult to even detect such a massive price manipulation. But then, the bitcoin cash community should actively block the obfuscation service to the central exchange that would not comply with the request. If this becomes successful, we can easily foresee the bitcoin cash (or any such cryptocurrency for that matter) price skyrockets across the board.
Yes, I am implying that the cash fusion service might be the reason why BCH is so cheap compared to BTC at this point. See for yourself:
And yet, there is no provision to prevent it from happening. Contrary to the popular belief, hyperinflation would never come to these cryptocurrencies as long as we keep inadvertently inviting those criminals to the crypto communities just like that. Earth humans are so used to living under their servitude (called government) that there is no single cryptocurrency that penalizes only a tiny handful of so-obvious, in-your-face criminals, even after Mt.Gox, the Craig Wright case, FTX and so many more have happened. And the central bankers are the one who pioneers to implement such a discriminatory currency, first. What an irony! Privacy coins are in fact preventing you from defending against just about any frauds you can think of. It looks like anarchy and liberty loving libertarians are the leading promoters of those rigidly private cryptocurrencies. Private coins might work so great in evading taxation and idiotic laws but isn't this painfully short-sighted and shallow? They are beginning to look like masked anarcho-communists on rampage, aren't they? Anyway, we may not be able to easily break laws without it but it is the central bankers and psychopaths who would get into trouble the most, isn't it?
People are underestimating how powerful the blockchain technology (a trustless public ledger) actually is and some people (such as Bitcoin SV) are actually working very hard in cancelling its power! Ordinary people do not usually commit financial crimes as they are simply spending money on groceries and such. Only a handful psychopaths in the extremely rich oligarchy are the ones we have to be cautious about (Yes, we know their minions are everywhere, though.) So it is indeed true that ordinary people do not have to worry about our side of surveillance. As a matte of fact, a laissez-faire society would be something like that. Honesty and spontaneous order is the way of life in a laissez-faire society and the block chain would be an ideal tool for us.
And, yes, the U.S. dollar may tank but the other fiat currencies will take over. The Weimar Republic style hyperinflation would happen, again, but then, that does not mean all commodity prices will skyrocket across the board, because the central bankers would never lose their control over the slavery and the wealth including manipulating prices.