big blockers use this as a reason to point the project in their direction. we already have bcash for big blockers. we can use bcash if we need a payment system. also, payment systems aren't really needed. regular cash works fine for most payments. what we need is a value storage mechanism. that's what doesn't exist at the moment, besides the current Bitcoin. what third parties are taking over?
Discussion
The state is not afraid of one more asset like gold, they can integrate it in the financial system they control. Especially not one without any privacy. The state is afraid of us not using their money anymore.
ETFs are third parties. Custodial wallets are third parties. Mints are third parties too. Most people who use lightning use it with custodial wallets, which makes it easy to control that as well. Self hosted lightning is a pain in the ass, still.
There is a reason why they want to outlaw Monero and let Bitcoin be / integrate it in their system and just KYC the shit out of it.