We're doing something like this with lykke.com. Fiat money are implemented as Colored Coins on top of Bitcoin. It has a range of advantages over pure fiat - tra

We're doing something like this with lykke.com. Fiat money are implemented as Colored Coins on top of Bitcoin. It has a range of advantages over pure fiat - tracking of issuance publicly, lower settlement times, integration with smart money capabilities of Bitcoin, and more.