How do economic and financial policies in government deal with cryptocurrencies?
In order to increase use of a cryptocurrency it could be suggested that the developers making this currency should not seek to develop a medium of exchange which would work separately from the country's currency as an independent currency, but rather seek to work together with it.
Though having a cryptocurrency working with an already existing currency would seemingly result in this cryptocurrency being backed on the by the country's pre-existing currency (which in return would give the same reliability),
nonetheless, to attempt to establish a new method of payment which would be reliable, it is necessary to create a relationship with the country's previously existing currency, regardless of the previous currency's basis
W.J. Luther writes in his paper &quot;Cryptocurrencies, Network Effects, and Switching costs&quot; (Contemporary Economic Policy, 34, 2016, 553-571)

&quot;By anchoring expectations- perhaps by committing to (or refusing to) accept a currency for payment of taxes- a government can effectively determine the medium of exchange&quot;

Hope this helps.