Once you have access to Bitcoin on-chain and have other people willing to transact directly through Bitcoin, with no fiat intermediaries like exchanges... yeah, there's literally nothing anyone can do to stop the transaction from going through (eventually).
The end goal with Bitcoin is to bypass all the permissioned fiat rails eventually.
What's the volume of Bitcoin traded outside of exchanges? 0.0001%?
How could you ever know? A group of people could trade paper wallets with 1000s of Bitcoin trillions of times and no record of it would show up on chain.
(It requires trust, because how do you prevent double spending attacks? Someone can just print out the same paper wallet twice.
You need to move the funds to an address you control to be sure.)
It's always Bitcoin in any scenario we can think of since value never ever leaves the chain, only the person with control of the on-chain value changes.
>Someone can just print out the same paper wallet twice.
I used "paper wallet" as a simple place holder, many tamper resistant one time use solutions exist, like Opendime.
...from KYC exchanges. There's already tons of non-KYC darknet exchanges that will happily take your btc and give you xmr, at which point you're off to the races. Any attempt to extend requirements at KYC exchanges would spur further developments in non-KYC/decentralized swappers, as we've seen so far.
The world your proposing isn’t just about upending financial plumbing. It’s predicated upon uprooting government financial regulation. That would send us back to the dark ages of finance. That’s not something I support.
> It’s predicated upon uprooting government financial regulation.
Imo this is a positive, but that's a little besides the point - it is inevitable in the same way that encrypted communications are inevitable and don't care whether Australia decides its laws trump the laws of math. If you care about the ability to maintain taxation, etc, then riding the wave is vastly preferable to being crushed by it.