No it doesn't work that way, because a re-monetization takes a long time and a lot of resources. Why re-monetize when you can use the system already in place?
In Iran, cash still worked and people used it to get smuggled out of the country, even when you were given 5 minutes to get out of your house and see it burn in front of your eyes, or neighbors would steal everything without consequence because you were now parted of a hated minority, you could still get cash via the minority community and family and get out.
If the revolution happened in 2040 vs 1979 iran or 1930s germany, and all finances were controlled by the centralized state via digital accounts, with your minority affiliation tags matched fairly well through a vast adtech apparatus, would those people really have that much to stand on? No, not nearly as much.
In germany during bismarck's time, they created the first welfare state in the 1880s. 30-50 years later the weimar republic, hitler and the holocaust happened. Just because the state is giving you something of value for your money TODAY, does not mean they will continue to do so TOMORROW in your lifetime.
I feel like you don't need %100 total financial surveillance to properly fund a welfare state about honestly minor amounts of cash, but governments are slowly trying to get there. It's very dangerous, and governments are always at risk to go full genocide. The rich use other methods and frauds and almost never use actual cash, other than businesses with a lot of small cash transactions (drugs). I don't think the current surveillance regime is very good for that purpose either.
Large scale criminal behavior is usually enabled by some other governmental policy. The US war of drugs basically funding the narco gang states of northern mexico and creating instability there is a great example of this.