Sure you can! Remember Fedcoins have convertability to paper, and paper has convertability to Fedcoin. That means that Fedcoin can be created and destroyed at

Sure you can! Remember Fedcoins have convertability to paper, and paper has convertability to Fedcoin. That means that Fedcoin can be created and destroyed at will by the Fed. Since nobody knows the total amount of cash in circulation (maybe not even the Fed) it's basically impossible to prove that the Fed "printed" Fedcoins by making them up rather than "legitimately" converting cash into Fedcoins. It's not as though the Fed is going to mark the provenance of the coins to facilitate people analyzing the system. All cash that gets converted to Fedcoin comes out of the Fed's wallet and all Fedcoin that gets converted to cash goes into the Fed's wallet. The whole point of bitcoin is that you don't need a central authority to keep people from making up an infinite number of "chits". But if you're going to have a system where there are some folks in charge there's no need to have a blockchain; it's an artifact of the need to have a decentralized authority system. If they can create and destroy at will for convertability to work, they can create and destroy at will to print money.