[Bajeezus]

"Will the government ever allow something like that?"

It's not that they won't allow it, its that its largely useless. The dollar is fungible. Who cares if a dollar spent on a new M1 Abrams was "your dollar", its identical to everyone else's dollar, so everyone else's dollar could have substituted yours. What benefit would knowing that possibly provide?

[jyturley]

OP is not talking about fungibility, but accountability. Web3 technology can provide transparency to see and verify that money is allocated in all the ways the entity said it would.

[Barrin92]

that transparency at best tells you what wallet received what funds, whoever owns or trades that wallet or what happens with resources in the real world using those funds is outside of the scope of web3 technology or for that matter any technology safe for surveillance.

[warkdarrior]

Transparency of the blockchain is only a temporary flaw. Better solutions exist (Monero, Zcash) or are being actively developed (Zk Rollups).