The local government could easily go zero taxes on everything and just collect through inflation.  So as long as the people hold any form of fiat they cannot escape taxes, and cannot default.  

Historically countries that escape international oppression face local oppression (trading one fiat for another like Nigeria) 

Bitcoin will allow countries to escape both at the same time.  Response to this will be to sanction or block that country from international trade and close off all tradition channels like twitter, swift, etc.  

Nostr and other censorship resistance protocols will be the method to organize trade when this happens.  

However the people must rise up and do this together (libertarianism).  who knows when and what the catalyst will be, but It will happen somewhere, and many other countries will follow.  

The stage is being set at this very moment.