  Previous work presented a theoretical model based on the implicit Bitcoin
specification for how an entity might issue a protocol native cryptocurrency
that mimics features of fiat currencies. Protocol native means that it is built
into the blockchain platform itself and is not simply a token running on
another platform. Novel to this work were mechanisms by which the issuing
entity could manage the cryptocurrency but where their power was limited and
transparency was enforced by the cryptocurrency being implemented using a
publicly mined blockchain. In this work we demonstrate the feasibility of this
theoretical model by implementing such a managed cryptocurrency architecture
through forking the Bitcoin code base. We discovered that the theoretical model
contains several vulnerabilities and security issues that needed to be
mitigated. It also contains architectural features that presented significant
implementation challenges; some aspects of the proposed changes to the Bitcoin
specification were not practical or even workable. In this work we describe how
we mitigated the security vulnerabilities and overcame the architectural
hurdles to build a working prototype.
