Yeah ๐Ÿ˜• it sucks but it makes sense. Anyone will still be able to allow on-chain pegouts if they run their own federation, but in practice I expect any reasonably-sized federation to intentionally disable them to avoid the state coming after them. Not sure whether on-chain spending will be a first-class citizen in any fedimint wallets, but I think itโ€™s unlikely. Governments are still too powerful.

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