What if the future means local currencies backed by bitcoin? For example 1 Paypal Coin would be redeemable for 10 bits at any time. This would scale bitcoin kinda, but also by having issuers compete against each other for integrity and trust and so on.

I mean what if Tethers next step is off-chain infra, that moves Tether around. And each Tether is pegged to for example 10 bits, redeemable on-chain or on LN at will.