> Say the United States decides to allow decentralized cryptocurrencies to become the dominant medium of exchange in the US; say it even gets rid of the $USD. W

> Say the United States decides to allow decentralized cryptocurrencies to become the dominant medium of exchange in the US; say it even gets rid of the $USD. What problem do you think this would solve? (assuming the US gov desires to continue all other operations in exactly the same manner as it does currently). In such a scenario, the US government cannot continue all other operations as it does currently, as its activities are financed by issuing practically risk-free USD bonds (if the US government defaults on its bonds, the USD is gone). In a market with decentralized money, the US government would have to issue bonds on equal footing with profitable, private enterprises, and would consequently have to pay market interest rates. No market would lend out to a government in a decentralized currency when that government is unwilling or unable to pay back, thus removing the option of issuing more bonds to pay dividends on current bond issue. It just wouldn’t work as it does now. No wonder the US can be the world super power when it can start a war and have the rest of the world finance it by buying the bonds the US government issued to pay for it.