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Hypothetically, what he's suggesting may not even need to be government-backed.

An independent auditor, with reputation on the line, could, for a fee, offer independent coin analysis and risk assessment. Perhaps something similar to the Underwriters Laboratories model... knowing a coin was "Coincheck-certified" or something could give similar confidence to knowing the UL sticker on a lamp means it's a bit less likely to burn your house down.

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That whole concept doesn't make any sense really. You don't have a lamp which can quietly turn itself into a plasma torch from a perfectly safe prior configuration. Yet any stable coin is an attractive nuisance basically - it involves keeping sizable money around doing nothing. As seen by pension raids that is a huge "steal me" sign. Even if you could keep it secure such an arrangement is fundamentally very entropic without it being a real currency with backing. It is still entropic but that is being used to sustain a nation state instead of bad finance which actively tries to avoid useful investments.

>An independent auditor, with reputation on the line,

I don't think this will matter. Moody's and S&P are two rating agencies that both failed to give useful info before the 2008 financial crisis. Their reputations weren't affected much as far as I can tell.

That's because most of the financial world stumbled.

The rating institutions won't take a big hit for blowing a call that 90% of the industry also blew.

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