the currency being represented is still very much a real currency. cash would still exist in this scenario, what I'm suggesting is just for bankers backend, it wouldn't really be consumer facing.
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i think thats where it converges, the banks still use stablecoins and stablecoin infra behind the scenes, but users just see USD on their bank app. backend might be jpmUSD, boaUSD, citiUSD, PyUSD, USDC, but abstracted to just USD. like scottish bank notes: https://en.m.wikipedia.org/wiki/Banknotes_of_Scotland
i would need to see a model of what you're proposing i think, i'm not sure i am seeing how to have the infra without ending up with a stablecoin still. all a stablecoin is is a token on that infra that the issuer will redeem for a dollar.
if a bank implements that infra, what parts end up different?
this is also why, during the USDC floating market depeg a couple years ago, options dealers wouldn’t write $1 strike calls. circle was still redeeming at par, so the redemption floor made those calls mispriced relative to fundamental value. thats all a stablecoin is, a token with $1 redemption.
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https://en.m.wikipedia.org/wiki/Banknotes_of_Scotland
they are just cryptocurrencies with value adjustments. they are frankly useless as a concept
if a bank implements that infra, what parts end up different?
https://www.wsj.com/finance/banking/crypto-stablecoin-big-banks-a841059e