Crypto doesn't solve this problem.
It reminds me of a recent video I watched from Samson Mow where he explains how wars are financed by governments printing money. With Bitcoin, as they can not print money, they would have to ask citizens if they would like to finance the war with their crypto, and most of the citizens would probably refuse
Minute 12:42
This is something I have explored in a few articles over the years too. Even without crypto - just imagine if governments only could use 50% of the taxes for services like infra and schools etc - but the other 50% was allocated by the tax payer. Not much would go to military.