Because then the Fed is exposing itself to the mess that is Ethereum (and honestly, blockchain tokens in general). In order to produce a token on a given block

Because then the Fed is exposing itself to the mess that is Ethereum (and honestly, blockchain tokens in general). In order to produce a token on a given blockchain as a central government, you’re by implication saying that the blockchain itself is legitimate. In the case of Ethereum this would be disastrous. As an example - What happens if people start putting this Fed-backed token into solidity contracts? You can’t wave it away from court and say “this is funny money and has no legal standing” if someone raises a dispute when you (the government) issued the token. You likewise can’t start treating Ethereum contracts as legally valid because they are utterly unfit for that purpose for literally innumerable reasons.