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cash that can ultimately settle on-chain.

That would be marvelous but I don't think it's technically possible unless we'd be able to embed a nano electronic component in a bill. That seems like a long way off but if you'd have a solar powered banknote that would have an embedded broadcasting mechanism built in, then it might be a possibility. I'm no electrical engineer so I might be hallucinating but fun to think about...

Like I mentioned, cash is the most convenient medium in many everyday situations so I can't envision at least some parts of society fervently holding on to the tradition of cash. For some people it's even a type of political statement the same way using Bitcoin is...

I suspect it would have to be some sort of note that's redeemable in bitcoin, similar to gold and silver notes of yore.

If there's a technological solution that removes the counterfeit and issuer risks, that would be amazing, but I also can't think of how it would work.

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