Sure if a government adopted BTC... but I don't think that's likely, for many reasons including the one you outline.

Its more likely a government would use their own coin/token - whether they develop it themselves or use an existing platform/protocol is another discussion entirely. But this essentially means they could know which individuals/companies owned which address

I'm sure if a government decided to adopt crypto - one of the motivations would be enhanced tracking. So the adoption of it would be in such a way that would allow them to easily associate an address with an entity/person

To be clear, I'm not advocating that a government should adopt crypto