Less cheekily, I think Kong like instruments when properly adapted could capture the best parts of local currencies (like the Bristol Pound), the messy parts of multi-governmental currencies (like the Scottish Pound), and the nice bits of computer validation.
In your example specifically, the Royal Bank of Scotland can still mint Scottish Pounds but back them on chain by UK pounds.
I'm of course hand-waiving the problems here - we've made a programmable monetary instrument. One can program things well or badly to support this kind of interoperability.
Less cheekily, I think Kong like instruments when properly adapted could capture the best parts of local currencies (like the Bristol Pound), the messy parts of multi-governmental currencies (like the Scottish Pound), and the nice bits of computer validation.
In your example specifically, the Royal Bank of Scotland can still mint Scottish Pounds but back them on chain by UK pounds.
I'm of course hand-waiving the problems here - we've made a programmable monetary instrument. One can program things well or badly to support this kind of interoperability.