If you're getting a home loan in an oppressive nation that doesn't want you to for some reason, they can seemingly stop you from owning or occupying a house even if you managed to get a loan in a cryptocurrency rather than the nation's officially recognized currency. Putting aside that the home's current owner, which may be a bank, would need to accept that cryptocurrency in the first place.
Gah. I shouldn't have mentioned houses... Now everyone is drilling down into houses. Which is an obviously difficult use case.
I can't solve all of the worlds problems, for all possible situations, today, in pure crypto. It's new financial system that's just barely getting started.
The easiest solution would be to do a person-to-person trade of a house that's not owned by a bank. If it is owned by a bank, then the bank probably going to expect local currency. So, the buyer or seller will need to find a means to convert crypto to local money. Though with crypto ETFs taking off, banks are getting less picky by the day. As for "What if your govt just takes your home away?", crypto doesn't solve oppression directly in one step. It gives people a lot more freedom from government oppression. Ex: It gives them options to leave the country without worrying about how the govt is going confiscate their local currency in the process --because their wealth is not stored in local currency.