The reason a country would want to use a crypto asset for their money supply would be to own the private ledger completely; they wouldn't utilize the decentralized, public, blockchains we see today.
All financial activity and transactions can easily be monitored on a blockchain; the movement of money could be tracked from it's inception to it's current location on one ledger. Each private key can correspond to a citizen (much like a social security ID) and citizens can be taxed more easily and efficiently. This is why China is leading the pack here and is already developing a PBOC digital currency[1].
Yeah, but if you own the private ledger completely, what advantage do you have over just having that kind of control over banks? It seems you can just do all of that with heavy handed banking regulations.
In any democracy this would kill the banks and government and central bank's ability to lie about spending and liquidity ... (because the ledger would be accessible to the justice system)
I find it hard to believe any central bank will risk that.
All financial activity and transactions can easily be monitored on a blockchain; the movement of money could be tracked from it's inception to it's current location on one ledger. Each private key can correspond to a citizen (much like a social security ID) and citizens can be taxed more easily and efficiently. This is why China is leading the pack here and is already developing a PBOC digital currency[1].
[1]=https://fortune.com/2019/11/01/china-digital-currency-libra-...