Once we get to a point where people aren't trying to convert their crypto back to fiat, then the institutions are really going to be concerned.   Currently, in Canada and the US, all of the exchanges are registered with FinTrack.  So, every transaction we make to convert to/from fiat is trackable and therefore taxable.

There are a few companies that are offering gift cards for crypto - but they are not yet the norm.    

Tesla's offer was interesting ... but, the gov't requires you to register your vehicle ... so at that moment, they know how much you paid for it and it's appraised value - so, at a later date, you can still be audited/taxed.  If they audit you and the car no longer exists, then they will hit you with a Capital Gain equal to the appraised value.

It will take time, but we should be able to slowly break away .... but the big ticket items (property and vehicles) are going to be very difficult to truly own.