This paper describes a way for drivechain to be implemented on monero with minimal impacts on privacy, analyzes community sentiment in BTC and XMR communities, and goes in depth on the security flaws inherent to drivechain as well as the possible ways they can be fixed. Below is the paper's abstract verbatim.
Abstract
Monero’s private by default design and lack of major exchange centralization makes it an attractive central currency to develop drivechains on. Through a minimal scripting system other applications of cryptocurrency can be implemented on sidechains of monero while mainchain currency remains unaffected. Additionally monero’s tx keys may allow for better truly trust-less implementations of drivechains by having a built in secret to attest to an action made. While drivechain is by far not a perfect protocol the benefits it would add to the monero ecosystem, such as increased adoption through expansion of use cases and ease of fiat by having legal entity compliant sidechains, makes preliminary research into implementing it on monero worthwhile despite the fact that drivechains as they are should not be implemented on monero. This paper sets out to be heavily criticized so developers experienced at improving monero can adjust the outline below into something that can expand monero without damaging the security of funds and stability of monero’s fiat currency valuation.
Link to the full research paper
Don't laugh. Gold can be purchased in many jurisdictions without KYC, so having a tokenized gold sidechain that may be exchanged with real gold at participating local dealers might actually qualify as a legal fiat on/off ramp. If gold is KYCed in your region, just then use a silver, copper, or even industrial grade manure or toilet paper side chain token. You can't KYC all commodities. Imagine the field day the press would having on any politician that required KYC for trading fiat for bull manure (BS) and vice versa. The jokes just write themselves.