What advantages would this have?
There are some people arguing in this direction, with the construction of settlement blockchains, but obviously the proof-of-waste system would have to be discarded.
I'm all for compromise, but I don't think it's possible to build a compromise system on top of bitcoin.
I think the Right Answer is to have an auditable public ledger maintained by a trusted third party. This could be the government, or it could be a private party, but the key to making it work is to make electronic money storage and transfer a commodity provided by what is essentially a public utility.
If you look at it from high above, it would be like replacing the implementation of the current banking system with a more modern stack, but still leaving a similar human interface with the same level of features.
Would this make sense?