Short definition:
Fiat as L2 means an entity (e.g. Coinbase or the US treasury department) securitizes Bitcoin into publicly or privately traded securities. Bitcoin transactions on this "Layer 2" happen via this centralized authority. You could argue this doesn't even count as a transaction happening.
This concept exists in multiple tiers.
- It could only happen for nation states and enterprise scales. Like Walmart paying its suppliers or the Saudi-China oil trade. It could happen at the smallest of scales like El Salvadors Chivo wallet.
- It could be fully backed or fractional reserves
I'm sure most people here are familiar with the topic.
With the US having a Bitcoin reserve now. What do you think of the scenario now? For me personally this event made me pretty sure on this topic. If Lightning payment terminals at all bars and nightclubs were common worldwide before nation state adoption I could have seen a realistic path to Lightning dominance. But now, if the US government makes deals with this reserve I see no other option than IOUs against it. Even Microstrategy chose this path with their half a million Bitcoin
Not happening46.2%
Happening and good23.1%
Happening and indifferent15.4%
Happening and bad15.4%
13 votes \ poll ended