Monero is superior in almost every way.
So no. Originally Liquid was meant to facilitate transfers between CEX.
The same CEX that are an essential part of KYC hell.
Discussion
Federation is likely not strong enough to resist this attacks. I also think that we need a native P2P network layer via Tor or i2p. Which currently no network has because it is much more easy to get out of sync. But maybe that is the price we need to pay for censorship resistant private money.