Excellent commentary as always sir. I agree that a closed-source CBDC that is solely secured by encoded logic is a disastrous idea.

The shift in thinking I hope to convey in the article is to imagine an open-source, auditable CBDC that is secured by Bitcoin (more accurately Bitcoin hash-power), rather than encoded logic.

Much of my appreciation of Bitcoin is rooted in Jason P. Lowery's thesis on Bitcoin being a defensive structure. If we take that thesis as valid, then Bitcoin as the security layer for open-source CBDC code.

Likewise, much of my thesis here is also rooted in existing DeFi protocols, most notably the FRAX ecosystem, which undertakes enormously complex market operations daily, processing billions of dollars in transactions completely autonomously through their various AMOs (automated market operations).

I think the combination of FRAX style AMOs, Bitcoin security and government constraining, freedom maximising, and auditable open-source CBDC code might be something truly remarkable.

The powers that be would fight such a CBDC tooth and nail, but it's ultimately up to us, the people, to decide how we want monetary policy to exist and to whom it should serve.

Right now, that system is corrupt. I think a well-designed CBDC could very easily shift the power of the money printer back to the people and away from central authorities and entrenched financial interests.