Fiat being backed by bitcoin is the same thing from a monetary stand point, it’s only functionally different for the user. What it would mean is immediate and impossible to control plummeting of any and all printed currencies when they are printed or new debt is issued. If bitcoin is the highest liquidity market and is the dominate pricing tool, then “hiding” inflation becomes impossible. ALL fiscal decisions result in immediate and sharp declines or increases in fiat purchasing power. It would be the end of widespread systemic theft from the money printer.
Discussion
It is a second best option.
I personally don't want banks to exist, I want to separate the state from money and I want to prevent CBDCs.
Ideally, yes.
Banks will always exist, same as retailers, insurance companies, broadcasting companies, etc. banks serve a useful purpose, the problem isn’t the bank, it’s the structure of power they obtain in a fiat system, that ends up horrifically abused.
In other words, when “bank services” can be provided by a local trusted friend or entrepreneur, for just 200-300 customers, with very high quality, customer centered values, and trust minimized multisig/CTV/BitVM design, then literally none of the problems of banks can or will manifest at scale ever again.
In other words, the problem has nothing to do with banks or financial services. They are necessary and desirable. The problem is the control structure they exist within, and all the incentives and consequences of that.
Sounds like bitcoiners are the new local bankers lol