[toyg]

> Instead of having untracked cash flows not paying taxes

Blockchain payments are tracked, so are bank movements; that's not the problem. The problem with blockchain solutions (well, one of many) is that they're pseudonymous, so authorities have to work to demonstrate that account X is linked to person A. Compare with the regular banking system, where every account must have a real identity attached: from the government's perspective, banks are so much better, and they already work (through Visa/MasterCard/Amex). Governments have absolutely no incentive to accept or push an anonymous digital currency. None whatsoever. The more anonymous a currency is (and this one is a bit more anonymous than blockchains), the worse it looks from the perspective of the state.