[salient]

After the government trying to subvert crypto standards, what could possibly go wrong with this idea, that would force half the world to use this instead of the US dollar?

Nobody would trust this. Bitcoin works because people trust it, because it's built on open source and P2P principles, so they trust it because it's "trustless". That's where most of its value comes from. People also trust the US dollar because it's been around for so long, and nobody even thinks about it anymore.

So yes, the Fed Reserve could come out tomorrow and say that 1 FedCoin = $1, and dollars are gone from existence (unless you're suggesting FedCoin should compete with the dollar? But then what's the point?), all of them being replaced by trillions of FedCoins. And the next day FedCoin would drop in value by half, taking the US economy with it.