Bitcoin has PoW, and open permissionless set of block producers, but if we had 50000 banks backed by Bitcoin, each with permissionless Lateral exit from one bank to another, and proof of reserves enforced on Bitcoin, this is a future that is of course scalable, but also more private and not at all obvious if it is any less sovereign than L1 ... Yes there are caveats, but sovereignity on Bitcoin has plenty of caveats too.