You are right, that's not a technical problem and Bitcoin is not a technical solution either — that's a social game of "let's make ourselves some new money without built-in constraints".

Then you would need to add some constraints over it for security, but the key difference would be that it's an open market: you can invent one solution, I can invent another and people will be free to choose between them or nothing at all.

When your money comes with some regulatory framework built-in, there is no much room for any choices in that respect and more temptation for all kinds of bureaucrats to abuse their power.