yes, just because a nation is on a gold standard doesn't mean they can't have devaluation of currency, like when spain dumped a bunch of gold into the market from south america.
Cryptocurrency wouldn't have this problem, since it has a hardcoded limit, unlike gold or USD.
A government which has to "seek loans" for crypto by definition must be trading in something which is not crypto internally. Because a government can't directly trade it's own citizens productivity (hence taxes), and can't mint new crypto to repay such loans in response to productivity.
So in such a scenario there are only two options: increase taxes on citizens for crypto they hold (while in the meantime being unable to pay for services upkeep - and thus probably inventing a form of fiat anyway to stay afloat), or devalue it's own currency to pay escalating loan rates to crypto holders to buy more crypto for those transactions in which people will not accept fiat.
Of course since taxes can only meaningfully be levied in the crypto-world on income, since you can control businesses to some extent but not holdings, the effect is the same: the compensation for your labor goes down, or you're fired (because the value of your output has gone down faster then wages), or most likely, you are inefficiently taxed at a much higher rate then is necessary to ensure the government is never stuck with the risk of a crypto shortfall which would suddenly put their ability to supply payment for services into almost immediate default.
Cryptocurrency wouldn't have this problem, since it has a hardcoded limit, unlike gold or USD.