The Federal Reserve, which manages the current currency, was explicitly made independent of such checks and balances.
Smaller jump then gold -> usd -> btc which actually means changing the global reserve currency.
If you think about it didn't the U.S. government did a similar thing by gold. USD was pegged to gold initially, then they changed it.
metal coin usd -> paper usd -> digital usd (closed, permissioned system) -> crypto usd (transparant, permissionless system)
The jump is a lot less between digital and crypto should be small.
In principle, miners or the infrastructure maintainers could be forced to never mine your transactions (well, transactions to/from particular wallet IDs), by the way. It would be of course harder, since your money is in a single bank, but all miners would have to agree to the ban for it to work.
I think you give Governments far to much credit, they can’t even manage to peg the penny to 1cent or a nickel to 5cents.
In 2020 a penny cost 1.76cents and a nickel cost 7.42cents.
Technically there is no seniorage when there is a loss, historically it was called an inflationary tax, meaning a loss in value to the existing money supply you hold.
Notice how you qualify your statement as many such papers treat it as such.
Yes, you can find some people, articles that refer to a loss as seniorage, but that’s a misuse and inconsistent with the actual definition. That’s also why when they do use the term improperly they typically add “negative”, specifically because the definition of Seniorage refers specifically to revenue/profit from printing money.
Nowadays coins are usually not made of pure and/or very valuable metals, but the notches have stayed to help impaired people and automatic identification of coins.