A Bitcoin standard and a Bitcoin exchange standard are not the same thing. Here's why it matters.

If central banks hold Bitcoin as a reserve but people still transact in government-issued currency backed by it, we've just recreated the gold exchange standard. The gold standard didn't fail because gold was flawed. It failed because the settlement layer was physical and governments could suspend convertibility whenever it was inconvenient. What stops the same thing happening again? Is self custody the only real answer?