You are totally misundersting how it works. A cryptocurrency that can be exchanged directly (by the Fed) with cash doesn't change how anything currently works.

You are totally misundersting how it works. A cryptocurrency that can be exchanged directly (by the Fed) with cash doesn't change how anything currently works. The author points this out: "The existence of cash doesn't get in the way of this process, nor has it ever gotten in the way. Bringing in a third liability type, Fedcoin, the quantity of which is designed to fluctuate in the same way as cash, would likewise have no impact on monetary policy." I.E., the Fed can debase the "FedCoin" cryptocurrency just as much as they can debase USD.