Unfortunately the financial systems of governments are getting destroyed and we are powerless to stop it.
Cryptocurrencies are not destroying government run financial systems. They are just an alternative.
Bitcoin's 7 tps is a base-layer limitation. Layer 2 technologies like Lightning aim to address this issue. Lightning is functioning well and growing rapidly.
I don't think it's fair to say most Bitcoin holders are unknown entities. The AML/KYC requirements for converting crypto into spendable fiat are strong. The criminal use of Bitcoin is a small compared to it's legitimate use as a store-of-value.