It will also depend upon whether they are willing and able to outbid all the other scrypt coins for mining services to secure their blockchain, which is a losing proposition for all non merged mined coins since the more such coins there are the more leverage the miners have to extort higher and higher pay for picking any particular coin to momentarily mine - momentarily meaning until some other coin decides to pay even more to bribe them to come defend it instead.
Scrypt coins could merge mine too. But it seems like independent mining is a crucial part on the less-than-zero-sum speculation game most of the altcoins operate.
Freicoin itself is not being merged mined, but only because we want to make a last hardfork (freimarkets) that may be harder after it is merged mined, of course it won't merge mine scrypt but SHA256 which is were most of the proof of work is.
Hiring mercenaries to secure national treasuries didn't historically work out well, did it? At least I recall reading one of the future-war type sci-fi authors such as maybe Pournelle or someone like that illustrating the problem with that, and implying it was a problem already seen in history, by transplanting into the future the basic strategy of how such mercenaries go about exploiting the nations foolish enough to fall into their trap. It began, of course, by having the nations all bid for the services of the alien mercenaries... That is, by "divide and conquer", getting the nations to bid against each other instead of to co-operate (in this analogy, to co-operate means to merged mine instead of letting the miners get them bidding against each other for the services of the miners).
If it was the state it could just have launched a 100% "pre-mined" chain and not just 50%, throwing the other half of the seigniorage to mining subsidies.
That's wasteful and unnecessary, look at Freicoin, for example, only 20% of the seigniorage will be used for mining subsidies.
You mercenaries analogy is great, to secure the network you can just use signatures instead of proof of work (operate a private chain)
If the operators commit fraud, it will be detected by any full node validating blocks (auditor). Blocks could be faster and bigger with no risk of having forks, and many other advantages (like being able of atomically trade with other private chains AND public p2p chains).
A national currency does NOT need to be p2p, it's ridiculous. If you want the trust-less part you can get it much cheaply.
But this was not a national currency, probably just another pump and dump scheme.