As of now, yes its almost impossible to use it as a payment because we are going to pay more taxes for the same thing we do with cryptos but in future the things may change when the society force them to make such changes in the government monetary policies. Even now its hard for someone to spend cryptocurrency and also when it comes to tax reporting.
This is indeed a big problem for cryptocurrency users. I think that the problem should be solved in other ways than filing cryptocurrency holders with the tax authorities in all cases when they made transactions using it. Indeed, for many, these will be very large lists.
Most likely, this will be the deduction of certain sums immediately when calculating with a cryptocurrency, and they will be paid by the other side of such settlements at the expense of the holder of the cryptocurrency.