Suspend your personal bias about Andreas, this is a detailed explanation of Covenants and BIP119 CTV.
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RT @europeanhodler
Have you heard about the BIP 119 controversy?
Here is excellent information about it. Watch it and decide for yourself.
(minute 2 to minute 40)
https://www.youtube.com/watch?v=vAE5fOZ2Luw&t=16s
https://twitter.com/europeanhodler/status/1519983868195004416

There is a controversy around covenants.

Recursive covenants could implement white lists and black lists of pre-approved addresses, and non-approved addresses, or two different categories of spendable #bitcoin. This would makes bitcoin non-fungible.

You may end up creating a situation when you can not only limit the next transaction, but limit it in such a way that it limits the transaction after it, which limits the transaction after it etc.

For example, this output has a covenant that only allows it to be sent by a transaction who's output has a covenant. And what is the covenant in that transaction? It's a restriction that its output has a covenant on the next transaction etc.

By creating recursive covenants you can basically impose restrictions on #bitcoin transactions that carry forward, perhaps in perpetuity, depending on how this is implemented. And the concern is that this can happen inadvertently.

You've created #bitcoin that can be sent to anyone, and #bitcoin that can only be sent to a specific list of addresses. You could theoretically have that list of addresses be a Merkle tree, which means it can be a very big list of pre-approved addresses.

Andreas is not saying BIP119 does this. He's saying that's one of the concerns about the power of recursive covenants.

There is controversy around covenants. Some are strongly for covenants, and some are strongly opposed to covenants.

This could be used to essentially shut down exit ramps in #bitcoin. To make it such that features of the banking system becomes built in features into #bitcoin. Which means hey are enforced in the scripting language, by the miners.

You'll end up with PayPal.
This is how you kill #Bitcoin.

But this doesn't mean that Andreas is against BIP119 but that's not the controversy. He is not, because he doesn't know if it can be used to implement these kinds of covenants.

But here is the problem; He's not sure.