So basically a centralized digital currency linked to and controlled by the government and thus influenced by central bankers - like what already exists with fiat. "...tied intimately to policy and credit." LOL, good luck with all that.
Actually there is a very good chance it would work, the vast majority of people have no problems with the current system and adding blockchain to the mix is going to be an upgrade and benefit everyone by increasing transparency, efficiency and lowering costs/fees. A government backed coin would be far easier for the masses to adopt than Bitcoin.