Olga Zeveleva
September 2017.

Is there, or will there ever be, an official state-issued bitcoin, or an immaterial equivalent to a material coins or notes?

1 answer

What is commonly understood by "cryptocurrency" is not really issued by anyone in particular, and arguably having an issuer, or any party that can unilaterally change the balances of any account by definition excludes that currency from the "crypto" world. Cryptocurrency is not just about being an electronic balance, it's about a balance that is safeguarded by protocol, which transparently and strictly governs how the currency is created and transferred. So Farmville money, or any money that can be created arbitrarily, by fiat, is arguably not crypto.

Something else you might not realise - every single crypto transfer is PUBLIC, as is the balance remaining in every wallet. It has to be, the world as a whole holds the information about who owns what, and who paid who and how much, this public knowledge is just what precludes tampering with the ledger. It also precludes arbitrary "issuance", or any other transaction that's not recognised as legitimate by the majority of the network. And you can't force the network to recognise anything it doesn't want to.

Now, could the US treasury create a protocol which would leave the government the right to arbitrarily issue money? Sure. Would people buy into it? Probably, to the horror of the original crypto community. Would еру US actually do it? Probably not. Such a system, if adopted, would effectively have a built-in self-destruct button for the entire economy. 

And that button would be hackable.