I live in the United States, so here is not that easy to use any cryptos as a peer-to-peer currency even when we have many services that we can use to withdraw our funds using crypto for everyday purchases is not here just yet. If you want to use your cryptos person to person, you must deal directly with an individual. That individual must be willing to go over the hoops required to exchange into fiat currency if the need arrives.
In my entire life, I was only able to buy one thing using cryptocurrencies to pay for goods and services, and that purchase was my current computer which I purchased from a friend using XRP. At that time, my business partner was willing to accept XRP as payment because he wanted to hold that currency. If you're going to use your favorite cryptocurrency, it must be with family and friends because unknown businesses and their owners are not ready to accept cryptos as payment.
Using services like BlockFi and PayPal to pay for goods and services using your crypto balances is not using cryptos as a peer-to-peer because you are using an exchange or custodian that will deduct your holdings and transfer those funds to fiat currency using the traditional system. Since you are using a custodian or intermediaries to use your cryptos, you will have to pay fees and be subject to all the laws and regulations that such a transaction requires. When I exchanged my XRP for my laptop, I didn't have to worry about rules and regulations because the transaction was made between only the parts involved. A genuine peer-to-peer transaction means no taxes to report, means no KYC to fill, no nothing. You get your goods and the other party its value for such goods. Pretty much just like cash.
In those days, Lightning Network was not a big deal yet, and the other party was willing to accept XRP because he thought that Bitcoin BTC was going to be replaced by XRP. After all, Bitcoin is not fast enough compared to XRP. Later on, he discovered LN and moved on back to Bitcoin. And just like everyone else, he is not just using a Lightning Network custodian and is not willing to set up an LN node because he doesn't want to spend the funds to open his channels; besides, he told me only a few people ever use cryptos to pay for his goods. Since El Salvador added Bitcoin as legal currency, it is now unwilling to accept crypto as payment.
Unfortunately, just like my friend, many others will use their favorite custodian to receive payments. Suppose they have the opportunity in the first place. In that case, the only people who may accept crypto payments daily are in El Salvador, thanks to El Salvador Bitcoin law, but those payments will be made using the aid of custodians.
Many Salvadorians don't understand Bitcoin alone, and they will realize the need to host their channels. As a direct result, they will be forced to use LN custodians like WoS, Chivo wallet, or any other custodian under the sun. Those payments eventually will be tracked by the government for tax collection and money laundering. Some people may even get their sponsored Chivo bank account freeze because the government decided that their account was involved in a money-laundering scheme or terrorist activities.
El Salvador's government has now decided to regulate protests in the streets. They say it so that the population is protected against COVID19 when protesting. Pretty much they want to control free speech with the excuse of COVID19. Can you imagine? You have money that your local government can track, and now a law regulating manifestations and protests on the streets. Soon enough, people will realize that their account has been frozen because they participated in an illegal protest against beloved president Bukele or whatever president is in turn.
Meanwhile, the whole crypto market is ignoring that using custodians is not the same as using the real deal and that Bitcoin Cash still has low transaction fees and, as such, doesn't require custodians to save up on costs. And even if you can afford the fees, if your neighbors can't, he becomes the weakest link and compromises your security and supply, those that use custodians compromise the total supply or validation of the 21 million total supply to those who can afford the transaction fees to host their channels.