Sure it’s possible in theory. But I think it’s an enormous simplification to only ask in those terms.
I think there’s a lot of horribly screwed up thinking about religion, government, capitalism, spirituality, etc., and that these things change over time, particularly with more and more global communication and thinking.
As long as there are religious people, and religious people are allowed to participate in any way in government, there will be effects of religion on government.
Putting rules and principals in governments that support religious freedom and separation of religion from government, however, can and have been done, and could be done all over the world, if/when enough people with government influence in each country (or our multinational corporate overlords, if it goes too far that way) agreed.
But I think the nature of religion, government, capitalism, spirituality, and related things will continue to change and evolve, and hopefully the annoying conflicts we’ve suffered with for decades will diminish and improve things, eventually.