just went through the bridge operations spec and one detail sitting wrong with me 😂
honestly? the atomic swap design is sound. CBDC converts to stablecoin, stablecoin converts to CBDC - neither side settles without the other completing
no double spend
no lost funds mid-conversion
clean
but then i hit this line. the central bank controls the CBDC-stablecoin exchange rate.
think about what that means. this isnt a market rate. its a administered rate set by the same authority that issues the CBDC. a citizen converting private CBDC holdings to public stablecoin gets whatever rate the central bank decides that day
no market mechanism. no independent price discovery.
combine that
with configurable conversion limits - individual and aggregate - and you have a system where the central bank controls not just the rate of conversion but the volume too. how much you can convert, at what price, is a single authority decision.
the atomic swap guarantees you wont lose funds in transit. it doesnt guarantee the terms of the conversion are fair or stable.
bridge that protects users from technical failure - or a conversion mechanism where the terms are entirely at the discretion of the issuer?? 🤔
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