Is this a long term trend?
It got pretty much unnoticed on HN, that Europe recently voted to make all crypto payments illegal unless the seller collects the personal data of the buyer. Independent of the amount. So there will be a track record of everything bought via crypto.
Is it only a matter of time until cash is going away globally, and states have access to everything their people buy?
Regarding end-2-end encryption: It does not prevent a government from reading your messages anyhow. They could instruct Meta (or whichever company is in control of the app you use) to send them the the messages you write directly from your phone. Or from the phone of the receiver. Or to send them the private key from your phone. They could also ask Apple or Google to do so, since those have acceess to everything on your phone.
And, as Tim Berners-Lee's invention drowns in DeepFakes and ChatGPT dystopia, this hardly seems a bad thing.