That hasn't happened because blockchains are a bad match for how people think of ownership.
A notional monopoly on violence is important, but even in a police state it just isn't enough. You must achieve a broad consensus that, even if this isn't good, it's better than the alternative, and if that ceases to be true in the minds of a great many people their alternative is going to assert itself right quick.
You think most people living under an oppressive regime think that there's nothing the government could do to be better? Such a state doesn't need broad consensus that there's no better alternative, it just needs to avoid the consensus that the personal cost of attempting to achieve the better alternative is worth it. That's where the monopoly on violence really helps.