Yeah, government currency does have those problems. I'm not sure I'd even classify it as real money to begin with, it's just a scheme governments impose on their populations. Real money is precious metals: naturally scarce, malleable, fungible, divisible, universally recognized as valuable. A very small set of cryptocurrencies also have a shot at becoming real money one day.

I don't think this can be called artificial scarcity though. It's real scarcity that's gradually inflated away by governments and banks. Data is already infinitely abundant as soon as it's created.