So back to the fed case. They setup a blockchain to move money around. Banks can send to fed, fed can send to banks. But also banks can send to banks. So if there were an FTX bank subsidiary, they could send directly to Alameda bank subsidiary, and each of them can validate the transaction (“update the ledger”) without the fed being involved?
Yeah. That’s not “full control”. Correcting errors and mistakes after the fact doesn’t work with money. Money is quite different than goods - money can be transferred instantly and then used instantly, goods cannot, they have to be packaged, moved to a loading dock, moved from loading dock into truck, driven to new location, taken off truck onto new loading dock, unpacked, etc. Only then can they be “used” (sold).
If you want a great example, even money that can be clearly identified after transfer often can’t be reversed, certainly not in a timely manner … the Citibank Revlon debacle. With instant transfers (and they have to be instant for any blockchain scheme to be worth switching to from current transfer methods), it’s even more difficult and even impossible quite often due to transfers across jurisdictions.