Hey @roy2016,
Always a complex question!
The introduction of Government issued Cryptocurrencies is to be expected and can be a positive thing.
It will eliminate money management costs, tax evasion, reduction in crime rates (offline at least!) and forgery would be eliminated.
But for a regime such as a dictatorship, it would be a dream come true as Cryptos do not necessarily need to be open source and decentralized. This would be a nightmarish scenario in which they could economically control or destroy their citizen's lives at a click of a button.
On a different note, I don't think this will spell doom for coins such as Bitcoin, the ones with genuine use case and real-world adoption. The Commodity Markets have already introduced mainstream acceptance, have been reducing volatility and I can see an ETF being introduced as soon as the DoJ and CFTC root out Market Manipulation (News Source). I cannot see why national and current cryptos cannot exist side by side.
I do believe a good shake out is needed though as The Wall Street Journal Study indicated that a significant proportion of the existing ICO’s showed red flags and another study from China detected 421 fraudulent Cryptos, which are similar to current SEC findings.
Cheers,
Shenobie
RE: The Marshall Islands replaces the US dollar with its own cryptocurrency