RFC: Creating a More Widely Adopted Digital Currency

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Most of the issues discussed in the OP have been explored in depth in hundreds of threads and found to be generally bad ideas.

The one I haven't seen before in quite exactly this form is the idea of trusting your master passwords to a central authority. This is so obviously bad I'm surprised you spent a couple of hours on it. Such a thing would make the currency completely untrustworthy as there would be no way to trust that a third party could not compromise the CA and steal your money from under you.