The throughput of the timechain doesn’t allow everyone to be their own custodian. The vast majority of people will be handling ecash tokens with an issuer that can be sent to other issuers with Lightning.
Some of those issuers will surely cheat and only be exposed in these bank runs.
Bitcoin only fixes counterparty risk for UHNW individuals ultimately.
That’s assuming lightning will be the only second layer stack around…
Is there an L2 that solves the fractional reserve risk of custodians and issuers? Federations like Liquid certainly mitigate but do they solve?
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