We agree that hiring a hitman is illegal, and we agree that it will be easier for the police to solve the crimes if encryption is banned and the police can read all the emails/whastapp/whatever of all the people in the city.
- Encryption doesn't stop law enforcement from having backdoors at key servers, and they do.
- Also we're discussing a financial transaction instrument, which REQUIRES MASS for it to make sense (for it to be valuable for transactions).
- While you can roll your own unique encryption and communication channel and authorities won't know a thing.
So no, situation is completely different with encryption.
It doesn't make even pragmatic sense, for ex. how can Apple index and process your photos, if it just sees them as bunch of binary noise? It can't. So it doesn't.