- Gov can easily collect consumption taxes through transaction fees

- Make transactions completely anonymous (similar to cash)

- Ease government infrastructure as we no longer need to print physical currency that can be lost or destroyed. Also potentially helping with counterfeit money. I'm also assuming coins would be pre-mined.

The major disadvantage I see is: Gov could reduce anonymity and further invade privacy of everyday citizens. I see this as too much power the dream of authoritarians.

I don't think you would need the public/private transaction paradigm (like zcash). We can watch transactions from wallets and know the owners without knowing who transactions are going to. This would operate the same way cash businesses operate. In a business wallet you'd still have to report everything on your taxes. We can still see when businesses make and lose money by tracking just their wallets. I think the best way to do this is not have wallets with special privileges nor privileged transactions. If we have to explicitly make transactions private they can do the same thing they do with encryption: "only bad guys use encryption because they have something to hide".