[zaguios]

For Swift Demand to work your account will need to be completely tied to your true identity. Initially the methods of verification aren't very strong to prevent any unneeded friction for early adopters of the service. Once Swift Coins start having real value I will be placing much stricter rules and requirements for identity verification. Starting with extremely strict regulations is both hard to enforce at the start and will harm the ability for Swift Demand to succeed.

Adding more money into the economy will constantly devalue it, you are correct. As I mentioned in another comment in order for this to work there needs to be speculation that the currency eventually will become more valuable and people start to buy it as a form in investment in a similar style to how bitcoin started. Once value has been established and new coins are created at a constant pace the hope is that it will be usable in the same fashion as any other form of currency.

Government due indeed print new cash, it is what causes the constant inflation that is present for all major currencies. All of your arguments appear like they would be the same for other real world currencies that do indeed function normally. There's a decent chance that it will fail, but I believe it's worth it to try.