[Erlich_Bachman]

It cannot if you own your own keys. "Not your keys - not your crypto". Of course if you let some other entity to hold your keys, you're basically just using a bank, which has its own benefits, but I was talking about the unique ability to handle your keys, which crypto provides, as opposed to any other electronic money system to date.

[cortesoft]

Ok, but what if the government says "anyone who accepts a payment from this wallet will have their assets seized"

At some point, someone will want to do something in the real world with this money, and the government can step in there.