As a thought experiment, I imagined a Government/Central bank auctioning (for $) bitcoin denominated bonds. These bonds would be repayable (in bitcoin) on dema

As a thought experiment, I imagined a Government/Central bank auctioning (for $) bitcoin denominated bonds. These bonds would be repayable (in bitcoin) on demand. Presumably each bond would fetch a value (in $) corresponding approximately to the current exchange rate. While the bond holder could cash them in at any point, why would they? Wouldn't many investors consider a bond backed by a major government at least as secure as a crypto coin? In this way, the government could effectively increase the supply of bitcoins (and presumably thereby reduce their cost/value). Of course, the Government runs the risk of bitcoin appreciating and then having all the bond holders cashing in, but with exceptionally deep pockets the only real reason to cash in would be if they feared a Government default. By selling enough bonds, presumably the price could be driven arbitrarily low, extinguishing the risk entirely.