Bright on Nostr: Not really, they want people to run their own federations and for the whole thing to ...

Not really, they want people to run their own federations and for the whole thing to be an inbetween of trust and decentralization. It's like a credit union, but much more local. If you run a federation in your local community, the trusted heads of the community would have a multisig to protect against rogue individuals.

Just like having many countries is better than a world government, having many little communities federated accounts with multisigs is better than the entire trust being on the """private""" (federally insured and regulated) banks. It doesn't magically fix everything, but it's a step in the right direction.