This rules out privacy coins and BSV.

how does it rule out [[bsv]]

Bitcoin, on layer one, offers no opacity for the rulers. It provides the same amount of transparency for everyone. And that implies not being able to secretly manipulate the coin supply. The ability to control the money supply, arguably the greatest power in the world, will not be given up voluntarily. A new digital system that doesn't give the rulers that power, which they have in the current system, is not just useless to them, it's a catastrophe.

right, being able to instantly and cheaply transact on L1 with the [[reserve asset]] means that you no longer need an L2 centralized middleman to provide the missing capabilities and therefore limit the opportunity to control