How central bank take over block chain?

Announce  ahad of time tht they are taking a clone of the current chain and assigning all address to fiat accounts. Any bitcoin account trading through the fiat system retains the original wallet address and key. The fiat banks guarantee your wallet, with some risk.

The stragglers, near the top, will balk, but it is Pareto efficient, the central banks are simply buying the best technology on the market, and making it official.  The Fed system works almost as efficient, it will add a bit of congestion, gaining ledger efficiency. The stragglers get caught with a ton of do-re-mi, and their only exit is regulatory income taxes like anyone else.  Each individual can still see their ledger entries on the block chain But the central banks, thus controlling the miner system, will likely batch up your exchanges for hourly transfer, using you local bank as intermediary.

But the key is that congestion pricing  apply, it is still the grease even though we are a government monopsony. Our local fiat banks are still competing for bitcoin accounts, anxious to provide good service. The effect is to automate the fiat FX market.

FDIC guaranteed bitcoin trading

Fiat banker guarantees heir hot wallet an secures the users hot wallet. Then h fiat bankers work their own version of the block chain. They hold their version until it is mostly settled within the normal Swift system. The central bankers will dive the other miners out of business and save on electricity.

At the top of the chain, who is there to trade with outside the fiat system? No one, the central banks run the chain just fine. They are forced into the system. The central bankers can then flatten the chain for a fresh start.  The coin bses still operate, performing their market main function. But they do not keep ho wallets, they can clear accounts in fiat immediately, or not as their clients choose.  Bitcoin becomes what is is and will always remain, a FX exchange tool with automatic central bank hedges.

The regulators cannot regulate algorithms, but the central bank mathematicians are free to automate them all they want.