I think that at most, and speaking completely out of my imagination, in such a case as you described, we would probably invent a new kind of decentralized government for crypto. That would be really neat. Incorruptible, automated and decentralized democracy. That is really the next stage we need to improve our democratic system, if you ask me. Hell, even things like Visas should be decentralized to stamp out forgeries. There is so much new potential that has not been explored yet. But I have no doubts that it will be implemented someday in the future, hopefully soon.
Even in my wildest imagination, i don't think our government will turn into a decentralized one, not today or even in the future. Because if that happens, then those government officials will no longer be relevant at all, which i think those people will not allow for it to happen. However, instead of turning the government into being decentralized, let's just hope that crypto and the government will be able to work as one so that both jobs from crypto and government will compliment each other.