They could lose 11 million Bitcoin, which are then deposited with the same bank. How can they guarantee 22 million Bitcoin?
Discussion
This is purely a theoretical discussion. But... if (I know its a big if) the U.S. government could guarantee that your bitcoin would be replaced 1:1 if the bank went under or otherwise lost your corn... would you consider using a bank for custody?
No. I still wouldn't trust them. I have no leverage to hold them to the agreement. To offer it they would need to hold more than they insured. Bitcoin is harder to hold at scale than individually. The cost of the insurance would be too expensive.
FIDIC works because they can counterfeit money to replace the bank deposit. They can't do this with Bitcoin
Based