My hot take, crypto(currency) is for pure peer markets, since all individuals are accounted for by a government its not especially useful for people. However, governments are essentially peers without some disinterested third party with the power of enforcement. This is place where crypto lives.

Yea, something like that. Although even there you still have bond ratings and just straight up reputations to tell you which governments are trustworthy enough to do business with, even without a blockchain.