So it's not ultra-clear, but the FairCoin thing sounds pretty crude.

Some folks get issued with USB boards which contain keys and maybe also store the blockchain. Being issued with the USB board by a centralized organization becomes a "license to create blocks on the chain".

If my understanding of it is correct then this really isn't any better than a conventional banking system. These types of system are trivial to take down by disrupting the central component. They're also open to abuse by whoever is the central administrator.