In the long term technology like this will end privacy for those who want to participate in the modern economy. But you shouldn't assume it will happen in a 'top down' way that will benefit totalitarian governments. Totalitarian governments require secrecy to do their evil deeds.

Look at the spread of mobile cameras (mostly in phones). These have allowed many an injustice to be exposed. The police no longer feel like they have immunity to do whatever they want.

Consider the benefits of being able to scan the brains of those accused of crimes against humanity. If people understood that in the long term there are no secrets they would hesitate to do evil deeds.