Abolishing Banks are not necessary because Just like US who wants to use crypto actively and There are People that Will Never transfer to crypto  as those are what Fits them The Fiat.

depend  in which country you live Because if you are living in mine?for sure You will Not Be asked about the Policy because The Politics is really Noisy and throwing words from politician to another politicians,Thats why How would they associated when it will only Make issue in social media and community.
And Banks will Still Be in need and won't leave till time comes that we are fully adopted and crypto can be use all over that world.

Well, It is impossible to cut the bank system,the growing development of digital technology, online payment systems require third parties such as banks.  Logically, where can we have fiat money if there is no process through the bank.  And of course the financial industry will continue to develop following technology.  Likewise, the government may change regulations by adjusting the circumstances and minimizing the occurrence of money laundering I guess

1. Certainly the government of a specific country or any won't allow banks to get abolished for it have become already a part of the system built for many years and even Bitcoin is existent, there are still people who are reliant on banks so it won't be possible for the government to abolish the banks.

2. The government is always on track of people's wages and even on commodities purchases were VAT is included so there are so many ways that taxes can be collected whether you are aware of it or not. Government can only be accessible on collecting taxes with regards to crypto upon doing transaction on centralized exchanges that practically have their concern with.

3. If the government cannot keep on track with the people's legitimate money, there would be a higher chance of committing corruption for there are no certain regulation to take control of how money is being transacted or earned and because of that other related crimes may arise.

The truth of the matter is, you can't regulate bitcoin. It doesn't matter what the government does in the end of the day. Bitcoin is likely to be accepted by the community, but not by the government. This is Bitcoin's current status.

1. Government don't like a decentralized currency which the don't have full control on it, so I think bank will remain bank even cryptocurrency will continue to exist.

2. If ever government accept cryptocurrency I they they will collect tax true the help of every crypto exchange and everyone will be obliged to take KYC.

3.I think corruption is anywhere either in fiat or in digital currency as long as it it involves money. People are always do corruption just to get more money and become wealth and powerful.

what about if governements just shuttered exchanges ? or if they forbid exchanges from selling bitcoin ?...

I seem to believe that a government accepts and validates cryptocurrency in their country for some reason. It could be true if:
They must have the aim of legalizing it whether they are really aware of the technology, don't want to miss the chance to join the party, or even hidden goal for the further and later regulation? I think taxes are very reliable to be considered because they may also have been considering about this.

1.  I like the question, but I would reword the question.  I think the real question is will the government transition cryptocurrency into their current banking system or will the government seize complete control of cryptocurrency?  The answer is either one or the other will happen.  Government will likely not want to anger the entire population, so they will adopt certain software and policy to control cryptocurrency.  Which leads directly to your second question.

2.  They already are collecting taxes and phasing certain points in, as far as the US government.  Look at the newest Paypal phenomena.  Now you can buy and sell (sorta, not our idea of selling) some cryptocurrency on Paypal.  Why would the government be so keen for Paypal to take this angle.  Biggest reason, Paypal already has taxes embedded into their system.  The current structure of Paypal forces KYC so now they have all of your information.  They can force taxes, seize assets, and do all of the fun stuff they like to do.  Paypal is massive in US, it provides the government the easiest way to track BTC purchases and sells. 

3.  See answer to question 2, lol.  They can track you no matter what.  Corruption will come and go just like anything else, there will be increases and decreases.  The real concern is what "corruption," or whatever you want to call it, will the government employ to tax, track, and seize.  My guess is it will be more of a collusion. 

Hey OP, ask yourself that question: if there should be no banks anymore are you going to be able to stay without them? What’s the best way to store your money safely if not behind that vault? I don’t think you will have lots of money and still want to store it at home , like where you going to be storing, in your bedroom in the wardrobe? Or is it going to be your kitchen, or the parlor?

Bitcoin is good for storing a part of your wealth and not all. Storing all your assets by yourself is some kind of risks, and you shouldn’t be doing that, it’s best to store in the banks, although they do so many wrongs.