Making it more difficult to transact in the official economy will drive more volume and sophistication to the black market, cryptocurrencies, criminal syndicates, System D.
That means less transparency, less control, less tax revenue, reduced government influence.
That used to sound good to me, when I believed that Government Is The Source Of All Bad Things.
But then I grew up, got some life experience, and learned that there are even worse things than taxes and regulation.
I'm pretty sure I don't want my community ruled by a local chieftain with rampant gang and tribal warfare, organized crime syndicates, protection rackets and an official religion.
You can see it happening right now when a state loses its monopoly on violence.
ISIS was a non-state actor that had the goal of creating a new state on the territory administered by some existing states, and has to some extent managed to do so as those existing states failed. The failure of a state in maintaining its "monopoly on violence" is almost inevitably followed by another state-like actor displacing it in that role -- there is no shortage of actors wishing to impose their will and no shortage of actors willing to use violence to do so in the absence of an actor with the resources and will to prevent them from doing so.
.. or exactly what the us gov wants. So it can send its military a certain way. The haven't had any success lately, so they are looking for new scapegoats.
That means less transparency, less control, less tax revenue, reduced government influence.
Seems counterproductive.