Cashout

I have an idea for the gub’ment.

Firstly, I note that we badly need cash notes greater than $100 due to inflationary pressures, and yet they seem to resist doing this.

Why? Well large banknotes just open up greater risks of higher value transactions in the black market (tax free) & criminal economies.

My solution – why not introduce a hybrid between cash and electronic money?

That is, a banknote which is backed up by an electronic identification system. The difference between this new idea and cash is that a new owner of the note would need to notify the relevant government agency of their new ownership for it be valid currency. And this could be checked on-line by any prospective recipient of the note, similarly to how a car buyer can check a car for encumbrances on line.

That is, the note needs to be validated by identification to be usable in a transaction.

Why is this a good idea you might ask?

Well, for one it puts high value notes into circulation and we need them.

Two, it fills this void before some other non-government (untaxed) currency like Bitcoin does the job.

Competition is the mother of invention I say.