Federated trust as decribed by GeeqCorp is precisely how humanity has done monetary transactions for centuries. Merely throwing in a blockchain for good measure doesn't change anything. Getting rid of federated trust is what made Bitcoin so revolutionary. Returning to it seems rather regressive.
My opinion is that an
authority on the blockchain should be present in order to avoid fraudelent and malicious actions. See what's it going on right now on the Ethereum blockchain and ERC20 tokens which is full of scams.
And also, if people are not so much in fond of federated trust, how is it possible that Ripple has so much support by users making it 3rd regarding Market Cap?
If you want an authority, why do you need a blockchain? Do you see a particular usecase that blockchain solves in a situation where you are fine with a trusted authority anyway? In my opinion, a blockchain would just be a very inefficient database and/or buzzword in such a situation.