The treasury of the community needs to be transparent and auditable. That’s where I could see a multisig on ethereum. Then you mint some ecash that can circulate in a privacy respecting way within the local community.
Has anyone done this already? A USDC to USDcash mint? Or a EURe to EURcash mint?
Those are the two largest community currencies we could use as examples, but the real power is in the long tail of local / community currencies.