If an appropriate electronic system were implemented governments would know how much money there is in circulation, who has it and if some illegal transaction has been done.

This measure could help reduce crime and remove black money and prevent capital flight to tax-havens.

Why this measure is not being implemented? What would be the consequences of it? Is there a political interest in not taking this measure? I'm looking for remarkable authors who discuss this.

  • $\begingroup$ You have an implicit assumption that the government is trying to help the citizens. There are many counter-examples to this. Check which countries have borders to keep people out and which have borders to keep people in. $\endgroup$ – zeta-band Sep 13 '19 at 15:44
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    $\begingroup$ I’m voting to close this question as opinion-based because it’s question about the motivations of politicians, rather than an economic concept. That said, I would also vote to close it because it asks multiple questions rather than one, and because in its current form it contains an off-topic rant about the CIA and Hollywood. $\endgroup$ – dismalscience Sep 14 '19 at 14:44
  • $\begingroup$ There's a huge privacy concern... $\endgroup$ – Art Sep 14 '19 at 18:46
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    $\begingroup$ I rolled back this question to remove the crazy bit about the September 2001 terror attacks. (Caveat answerer.) $\endgroup$ – Giskard Sep 15 '19 at 7:33
  • $\begingroup$ It's not terribly clear what you're talking about here with "hard currency", but see en.wikipedia.org/wiki/Cashless_society $\endgroup$ – Fizz Sep 15 '19 at 8:54

Governments do know how much physical currency has been issued, and have decent ways of estimating how much money is in circulation. And the evidence to date is that digital currencies facilitate crime, including fraud, extortion, blackmail, international transfers of dodgy money, and money laundering.


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