Yes, you convert them into bread and milk the same way you convert little pieces of paper into bread and milk: You find someone who's willing to give you bread and milk in return for them.
There are massive P2P economies already built in most third world nations that work on crypto. They prefer stablecoins but will happily accept BTC as well. It's a serious enough problem that they've started using code words to refer to crypto currencies ("goat" for USDT, "chicken" for ETH, etc.)
If a corrupt third world government is scared of a piece of tech, it is, imo, good tech