Instead of the central bank issuing new digital token(the ones you can’t touch), they can print a physical dollar bills(one you can touch) in markets. These bill will live on credit card payment networks and you are semi free to do with them as you wish.<p>Fiat currency as it is is already virtual enough. There’s no need to have blockchain involved.<p>What Bitcoin provided solution for is initial coin distribution problem, which its answer was mining rewards, and very little else.