Frictionless, permissionless large payments are illegal. The problem is that no one has worked out how to make micropayments costless, and that has nothing to do with AML/KYC and everything to do with the costs of running a payment system.

Bitcoin has turned out to be expensive to mine. Most other distributed ledger "currencies" have been launched to make money for the creators of the artificial scarcity.

Governments cannot give up control of the money supply but they are the only ones that can establish a form of electronic currency that works the same as cash does now.

Whether they're willing to make it as anonymous as cash or allow it to be exchanged for other government's electronic currency is part of the problem that needs to be solved.