I think it’s the combo of federations (I thought we were working to get rid of the requirement to trust) and e-cash (which has to be issued & backed by said federations, and needs to be tradable between federations - wait, that sounds familiar).

Just seems like a LOT more moving parts that require trust and feel very fiat to me and the only benefit I can see is a slight reduction in the need to learn to properly self-custody your bitcoin and a bit more privacy, as long as you can trust your federation.