I'll begin with a theoretical demonstrative example.
The Bureau of Land Management (sorry for immediately Americanizing the question, to all the European readers out there, but this idea might not work well in Europe anyways, for reasons that will soon become clear.) manages ca. 250 million acres (1 million , and 2.5 acres to a hectare), a landmass approximately the size of France and Germany combined. The Bureau offers land leases regularly, for a multitude of different reasons. I vaguely remember them offering land for sale at times (which probably means it's never happened), but for this thought experiment, let's imagine that land sales are on the table.
Land prices in America can vary between $1k and $100k an acre (napkin math), depending on where you're looking. Most BLM land is "what homesteaders didn't want", which would probably put it in the lower bound of that spectrum, but let's say that most of it could sell for $5,000 an acre, and that BLM would "set aside" y million acres for this program.
BLM would then create x amount of this coin per acre, and sell an amount of it to investors based off of the amount of land they would be putting up for sale in the coming year/amount of land up for lease. The BLM would promise to accept the coin as legal tender for land sales and leases, putting a minimum USD value to the coin. Most land sales and leases that I know of are auction based, and they usually have a minimum bid amount, so there would be a link between the value of the coin and USD. If they made 10 coins per acre, and set that as a value, then an example auction would have a minimum bid of: 5 acres for sale, min. bid of $25,000 or 50 "coins". This gives the coin a minimum value, backed by a government agency.
Now say we jump ahead a few years, and cryptocurrency hype has driven up the price (government accepted crypto, fiat-backed to some degree), BLM is able to sell these coins for more than it costs them, there's more interest in BLM land sales, also driving up their revenue due to increased bidding on the auctions.
So, from BLM's perspective, why would/wouldn't this be a valuable path to take?
Also a relevant question, what are the theoretical pros and cons of this cryptocurrency over other existent cryptocurrencies?
(and is there a short word for cryptocurrency, it feels ridiculous writing it out every time)
As I write this all out, I see a number of flaws already. I hope the minimum quality to make a question post is met, though, and I appreciate comments and critique.