The Walls Are Going Up: Capital Controls Have Already Arrived in the First World
Originally via @JoeyTweeets on X
You’re not going to wake up one morning to a news alert that says “CAPITAL CONTROLS IMPOSED.” That’s not how it works in G20 countries. There’s no dramatic peso-style freeze, no Malaysian-style currency peg, no single event you can point to and say that’s when they locked it down.
Instead, what you get is a decade-long accumulation of regulations, reporting requirements, transaction thresholds, screening mechanisms, and surveillance infrastructure. Each one individually reasonable. Each one framed as fighting money laundering or terrorism or tax evasion. And collectively? They amount to the most comprehensive system of capital controls the developed world has ever seen.
Most people have no idea it’s happening because they’re still looking for the dramatic version.
I want to walk through what’s actually been built, what’s been legislated, and what’s already operational across the G20. Then I want to talk about why Bitcoin is the only credible response to what’s being constructed. Because the conversation about capital controls is stuck in 2015, and the reality on the ground is about five years ahead of the discourse.
The Surveillance You Didn’t Know Existed
Start with the thing nobody talks about at dinner parties: the FATF Travel Rule.
The Financial Action Task Force is an intergovernmental body with no direct legislative authority that nonetheless dictates financial policy in virtually every country on earth. Their enforcement mechanism is elegant. Countries that don’t comply get greylisted, which triggers enhanced monitoring and scares off foreign investment. Get blacklisted and you’re functionally severed from the global financial system. Soft power with a very hard edge.
In June 2025, the FATF adopted the most sweeping revision to its Recommendation 16 since the rule was created after 9/11. Here’s what it means in practice: for any cross-border payment above $1,000 USD/EUR, your name, address, date of birth, and account details must now accompany the transaction through the entire payment chain. Financial institutions are required to collect this, verify it, and transmit it. They’re also now required to implement verification tools to protect against fraud, which sounds benign until you realize it means every institution in the chain is validating your identity before your money moves.
The implementation deadline is the end of 2030, but many jurisdictions are moving faster. The EU’s Transfer of Funds Regulation already requires this information to accompany all crypto transfers between service providers. No minimum threshold. Send 50 euros worth of Bitcoin from one EU-regulated exchange to another and your full identity data goes with it.
As of early 2025, only 46% of FATF member countries had fully implemented the Travel Rule. But that number is misleading. The pressure to comply is immense and directional. Nobody’s moving away from implementation.
What this amounts to is a global transaction surveillance system. Not proposed. Operational and expanding.
They’re Coming For Cash, Too
Cash is the last truly private way to transact in the traditional system. So naturally, it’s being systematically restricted.
The EU passed Regulation 2024/1624 (the Anti-Money Laundering Package) with a vote of 482 to 47 in April 2024. Starting July 10, 2027, businesses across all 27 EU member states are prohibited from accepting or making cash payments above €10,000. This applies to single transactions or multiple payments over time that “appear to be linked.” The language is deliberately broad.
But the €10,000 cap is just the ceiling. Cash transactions above €3,000 now trigger mandatory identity verification: government-issued ID, KYC procedures, records retained for five years. Businesses must monitor payment patterns to detect structured transactions designed to circumvent the limits.
And many EU countries already go much further. France caps business cash transactions at €1,000 for residents. Greece at €500. Belgium at €3,000. The EU regulation explicitly allows member states to impose stricter limits.
Meanwhile, a new EU Anti-Money Laundering Authority (AMLA) is being stood up in Frankfurt with 400-plus staff to directly supervise anti-money-laundering controls at the 40 biggest financial institutions in the bloc. This is a brand new enforcement body with continent-wide reach.
The pushback is minimal but telling. Hungary amended its constitution in 2025 to include explicit cash protection provisions. Norway passed a law prohibiting businesses from refusing cash up to about €1,720. These are defensive moves by countries that can see where the trend is headed.
The standard rebuttal is that private transactions between individuals are still exempt. That’s true today. But the infrastructure to monitor, identify, and restrict cash transactions is being built for the commercial sphere first. History suggests it doesn’t stay there.
Your Government Now Controls Where You Invest
This is the one that should make everyone pay attention, because it’s capital controls in the most literal possible sense: governments telling citizens where they can and cannot put their own money.
For decades, countries screened inbound foreign investment. The US has had CFIUS since 1975. But starting in 2023, the paradigm flipped. Now they’re screening outbound investment. Where you, as a citizen, are allowed to deploy your own capital abroad.
The US went first. Biden’s Executive Order 14105 in August 2023 declared a national emergency and directed the Treasury Department to restrict investments by US persons into semiconductors, AI, and quantum technologies in “Countries of Concern” (currently China, including Hong Kong and Macau). The final regulations took effect January 2, 2025.
The definition of “US person” is worth reading carefully: any citizen, permanent resident, entity organized under US law including foreign branches, or any person in the United States. If you’re a Canadian visiting New York and you make an investment in a Chinese AI company from your hotel room, you’re potentially covered.
Then in February 2025, the Trump administration’s “America First Investment Policy” signaled a massive expansion, adding biotechnology, hypersonics, aerospace, advanced manufacturing, directed energy, and anything tied to China’s Military-Civil Fusion strategy to the scope. That’s not narrowing. That’s most technology-adjacent investment into China.
The EU is following the same playbook on a slightly delayed timeline. In January 2025, the European Commission published a Recommendation urging member states to review outbound investments in semiconductors, AI, and quantum, retroactively back to January 2021. By December 2025, the Council and Parliament reached a political agreement on a revamped Foreign Investment Screening Regulation as part of the EU’s new “Economic Security Doctrine.”
The UK updated its National Security and Investment Act guidance in May 2024 to clarify that it applies to outward direct investment.
This always starts with national security. Semiconductors, AI, quantum. Nobody’s going to argue those aren’t sensitive. But the scope always expands. The Trump administration’s February 2025 expansion proved that within months. And now more than 100 jurisdictions worldwide apply some form of investment screening.
When your government can review, delay, or block where you invest your money, that’s a capital control. Full stop.
The Automatic Reporting Machine
Here’s something that’s been running for years and most people either don’t know about or have normalized: your bank is already reporting your financial information to foreign governments. Automatically. Annually. Without a warrant or your consent.
Two frameworks do this.
FATCA (the Foreign Account Tax Compliance Act) has been in force since 2010. Every foreign financial institution on the planet must identify US persons and report their account information to the IRS. Refuse and you face a 30% withholding tax on US-source income. It’s compliance through coercion of the global banking system.
CRS (the Common Reporting Standard) was developed by the OECD at the request of the G20 and went live in 2017. Over 100 countries participate. If you hold a financial account in any participating country where you’re not a tax resident, the institution reports your information (balances, interest, payments) to local tax authorities, who share it with your home country. Automatically. No permission slip.
And now the net is expanding to crypto. The OECD’s Crypto-Asset Reporting Framework (CARF) is being adopted by jurisdictions globally. The UK enacted CARF regulations effective January 1, 2026. This closes what was the last significant gap in the automated reporting regime.
Audit cycles have tightened dramatically. Large financial institutions now face reviews every 18 to 24 months, down from 3 to 5 years. Tax authorities are deploying AI to detect anomalies in the data.
Between FATCA, CRS, and CARF, if you have a bank account, investment account, or crypto account virtually anywhere in the developed world, your home government knows about it. The system runs in the background, year after year, with zero friction and zero transparency to the account holder.
CBDCs: The Infrastructure for Programmable Money
137 countries and currency unions representing 98% of global GDP are now exploring Central Bank Digital Currencies. There are 49 active pilot projects. 16 G20 nations are in development or pilot.
China’s e-CNY is the furthest along: 2.25 billion digital wallets, active retail use, and a cross-border platform (Project mBridge) connecting banks in China, Thailand, the UAE, Hong Kong, and Saudi Arabia. India’s e-Rupee grew 334% in a year. The ECB is deep into preparation for a digital euro. Russia is piloting the digital ruble.
Cross-border wholesale CBDC projects have more than doubled since the G7 sanctions on Russia. There are now 13. That’s not a coincidence. Countries watched Russia get partially severed from the dollar system and concluded they need alternative rails. Those rails are being built with surveillance capabilities baked in.
The US is the notable holdout on retail CBDCs. Trump’s Executive Order banned agencies from establishing or promoting one, and the House passed the Anti-CBDC Surveillance State Act. But the US is still participating in wholesale cross-border CBDC research through Project Agorá.
The programmability question is the one that matters most. Unlike cash or even bank deposits, CBDCs can theoretically be designed with spending restrictions, geographic limitations, expiration dates, or conditional access. Central banks insist they won’t do this. But the capability is inherent in the architecture, and the history of governments promising restraint in the use of new surveillance tools is not encouraging.
De-Banking: Financial Exclusion as Enforcement
Everything above is structural: legislation, regulation, infrastructure. De-banking is where it gets personal.
In 2022, during the Canadian Freedom Convoy, the government froze 76 bank accounts totaling $3.2 million under the Emergencies Act. A court later ruled this unconstitutional, but the precedent was set. Canada’s Banking Ombudsman opened 94 de-banking cases in 2024 and 105 in 2023, and openly admits it cannot challenge a bank’s decision or even tell the customer why their account was closed.
In the UK, the FCA found that banks were closing nearly 1,000 accounts per day. Over 343,000 in 2022, up from about 45,000 in 2017. Eight of the UK’s biggest banks closed 140,000 small business accounts in a single year.
The structural driver is the AML/BSA framework itself. Regulators have broad discretionary authority to impose massive fines on banks for inadequate “risk management,” assessed on subjective criteria. So banks de-risk aggressively. They’d rather lose a customer than face a regulatory action. And “reputational risk” became the catch-all justification for dropping anyone who might generate a headline.
There’s been some pushback. Trump signed an executive order in August 2025 ordering regulators to eliminate “reputational risk” from guidance and requiring banks to make decisions based on “individualized, objective, and risk-based analyses.” But the order doesn’t cover payment processors or credit card networks, the entities that have been among the most aggressive in ideological de-platforming. The structural incentives remain intact.
Canada: A Case Study in Real Time
Everything above describes the global system. But if you want to see how capital controls emerge in a country that considers itself free and democratic, watch Canada. Because Canada is building every layer of the stack simultaneously, and both major parties are contributing.
Start with what’s already operational. FINTRAC (Canada’s financial intelligence unit) underwent a massive expansion in 2024 and 2025. Two waves of new obligations hit reporting entities: the first in April 2025, the second in October 2025. The list of who must report to FINTRAC now includes title insurers, mortgage lenders, armoured car operators, and white-label ATM providers. Sanctions evasion was added as a reportable offence in August 2024, meaning any transaction suspected of being related to sanctions violations must be flagged. FINTRAC can now share information with the RCMP, CSIS, the CRA, the Competition Bureau, and foreign states. Penalties for non-compliance: up to $500,000 or five years imprisonment on indictment.
All of this was accelerated to align with Canada’s upcoming FATF mutual evaluation. Canada doesn’t want to get greylisted. So FINTRAC’s powers expanded faster than originally planned, and the scope of who counts as a “reporting entity” keeps growing.
Then there’s the Emergencies Act precedent. During the 2022 Freedom Convoy, the federal government froze 76 bank accounts worth $3.2 million. A Federal Court ruled the invocation unconstitutional, but the operational precedent was set: Canadian banks will freeze accounts on government instruction, instantly, without judicial review. The Banking Ombudsman later confirmed it cannot challenge these decisions or even explain them to affected customers. If you’re a Canadian who watched that happen and concluded the banking system will always be a neutral utility, you weren’t paying attention.
But the newer and more insidious developments are the soft capital controls now being proposed by both the Conservatives and the Liberals. These don’t look like capital controls. They look like tax incentives. That’s the point.
During the 2025 federal election, Conservative Leader Pierre Poilievre announced the “Canada First TFSA Top-Up”: an extra $5,000 in annual TFSA contribution room, but only if the money is invested in Canadian companies. The existing $7,000 limit remains unrestricted. The additional room is conditional on domestic investment. Poilievre framed it as patriotism: “rewarding patriotic Canadians who invest in Canadian businesses.”
He followed that with the “Canada First Reinvestment Tax Cut”: a full deferral of capital gains taxes on any asset sale, provided the proceeds are reinvested in Canada. Sell a property, sell stock, sell a business. No capital gains tax, as long as the money stays in Canada. Move it out of the country and the tax bill comes due immediately. The policy was proposed for a window from July 2025 through December 2026, with the promise to make it permanent if it produces “an economic boom.”
Read those two proposals carefully. The TFSA top-up creates a two-tier savings system: unrestricted room for the base amount, domestically restricted room for the bonus. The capital gains deferral creates an explicit tax penalty for moving capital out of Canada. Neither proposal prohibits foreign investment. But both use the tax code to make domestic investment cheaper and foreign investment more expensive. That is the textbook definition of a soft capital control.
And here’s the historical context that makes this more alarming: Canada has done this before. From 1971 to 2005, RRSPs were subject to a Foreign Property Rule that capped non-Canadian investments. It started at 10% of book value, rose to 20% in 1994, then 30% in 2001, and was finally abolished in 2005. For over three decades, Canadian retirement savings were legally required to be predominantly invested in Canadian assets. The rule was scrapped because economists demonstrated it hurt returns, concentrated risk in a small market (Canada represents less than 3% of global equities), and didn’t even meaningfully boost domestic investment. The mutual fund industry found derivatives workarounds, and the rule became a pointless drag on middle-class savers.
Now the political pressure is building to reimpose something similar. And this time it’s not just RRSPs.
On the Liberal side, Prime Minister Mark Carney’s government has been openly pressuring Canada’s “Maple Eight” pension funds (which collectively manage roughly $3 trillion in assets) to invest more domestically. Industry Minister Melanie Joly told fund managers to invest more of their assets at home as part of a broader push toward “economic nationalism.” Carney’s finance minister met with Maple Eight CEOs in Toronto in early 2025 to discuss new domestic ventures. The CPP Investment Board’s CEO publicly signaled interest in Carney’s proposed infrastructure projects: bridges, pipelines, utilities.
Currently, over 75 cents of every dollar managed by the Maple Eight is invested outside Canada. When you exclude government bonds, Canadian exposure drops to about 12 cents on the dollar. The political class sees $3 trillion in assets and wants to redirect them. Multiple senators and policy commentators have called for mandated domestic investment minimums, similar to rules in Austria, Belgium, Denmark, Germany, and South Korea.
Former Bank of Canada deputy governor Paul Beaudry warned this “arm-twisting” risks descending into “crony capitalism.” McGill finance professor Sebastien Betermier called mandated domestic investment “the equivalent of imposing a tax on pensioners.” The C.D. Howe Institute published a warning in early 2025 that reimposing foreign investment limits would hurt savers without benefiting the economy, exactly as the evidence showed when the RRSP foreign content rule was in effect.
But the pressure is bipartisan. It’s not just the Liberals. Poilievre’s capital gains deferral explicitly penalizes capital that leaves Canada. His TFSA top-up restricts bonus room to domestic assets. Quebec Premier François Legault pushed the province’s Caisse de Dépôt pension fund to invest in the local economy under his “Quebec Power” program. Alberta Premier Danielle Smith pursued withdrawing the province from the federal CPP to redirect pension money toward the oil and gas sector. The impulse to control where capital goes transcends party lines.
And none of this is being described as capital controls. It’s “economic nationalism.” It’s “standing up to Trump.” It’s “investing in Canada.” It’s “rewarding patriotic Canadians.” The language is always positive, always voluntary-sounding. But the architecture is unmistakable: tax incentives that reward domestic investment, tax penalties that punish foreign investment, political pressure on pension funds to redirect capital homeward, and a financial surveillance apparatus (FINTRAC) expanding its reach and powers every year. Canada already demonstrated in 2022 that it will freeze bank accounts without judicial review. It already had a 34-year history of legally restricting where retirement savings could be invested. And now both major parties are proposing new mechanisms to steer capital back inside the border.
If you’re Canadian and you think capital controls are something that happens in Argentina, you’re not reading the policy proposals coming from your own politicians.
Stack It All Up
None of these mechanisms were designed in isolation. Together, they form what I’d call a capital control stack:
Identity layer. You cannot open an account, transact above threshold, or hold assets without full identity verification. KYC, FATCA self-certification, CRS reporting. The system knows who you are.
Surveillance layer. Every significant transaction is automatically reported. CRS, FATCA, CARF, the Travel Rule, BSA suspicious activity reports. The system knows what you’re doing with your money.
Restriction layer. Governments can screen, delay, or block investment decisions. Cash usage is capped. The system can control where your money goes.
Enforcement layer. Non-compliance means account closure, financial penalties, or exclusion. The system can punish you.
Programmable layer (emerging). CBDCs provide infrastructure for direct, real-time control over how money can be used. The system could eventually dictate how you spend.
Each layer is individually defensible. Anti-money laundering. Counter-terrorism financing. Tax transparency. National security. Consumer protection. Nobody’s going to win an argument against any single measure in isolation.
But stacked together? This is a comprehensive apparatus for monitoring and controlling the movement of capital across the developed world. It’s not a conspiracy. It’s worse: it’s a consensus. Every G20 government is building the same thing, roughly simultaneously, using the same institutional frameworks (FATF, OECD, BIS, FSB) as coordination mechanisms.
Why Bitcoin is the Exit
If you’ve read everything above and your response is “well, I have nothing to hide,” I’d ask you to reconsider the framing. The question was never about having something to hide. It was always about having something to protect.
Every layer of the capital control stack depends on a single architectural assumption: that your money lives inside institutions. Banks hold your deposits. Brokerages hold your investments. Exchanges hold your crypto. Processors move your payments. And because your money sits inside these intermediaries, it’s subject to every regulation, reporting requirement, freeze order, and screening mechanism those intermediaries must comply with. The entire control apparatus is built on the chokepoint of institutional custody.
Bitcoin breaks that assumption. Not partially. Completely.
When you hold Bitcoin in self-custody, your wealth exists as information protected by cryptography. There is no intermediary holding it on your behalf. There is no bank to receive a freeze order. There is no account to close. There is no institution sitting between you and your money that can be pressured, fined, greylisted, or threatened into cutting you off. Your keys, your coins. That’s not a slogan. It’s a description of how the protocol works at a technical level.
Go back through the stack and test each layer against self-custodied Bitcoin.
The identity layer requires KYC at every financial institution you touch. But Bitcoin doesn’t require an institution. You can receive it directly, peer to peer. You can generate a wallet with no ID, no application, no approval. The network doesn’t know your name and doesn’t need to.
The surveillance layer depends on automatic reporting from institutions. FATCA, CRS, CARF, the Travel Rule: all of these mandate that institutions collect and transmit your data. A Bitcoin transaction between two self-custody wallets touches none of these frameworks. There’s no intermediary to file a report. No server that knows your tax residence. The transaction exists on a public ledger, yes, but the ledger doesn’t know who you are unless you volunteer that information.
The restriction layer (outbound investment screening, cash caps) depends on controlling access points. Governments can tell banks to block wire transfers, tell brokerages to reject certain investments, tell businesses to refuse cash above a threshold. But they can’t tell the Bitcoin network to reject a transaction. There’s nobody to tell. No CEO, no compliance department, no headquarters in a jurisdiction. A Bitcoin transaction clears because it’s valid according to the protocol’s rules, not because a compliance officer approved it.
The enforcement layer (de-banking, asset freezing) works because your money is held by entities that answer to regulators. Take your money out of those entities and the enforcement mechanism loses its target. This is not theoretical. During the Canadian Freedom Convoy, banks froze accounts because the government told them to. Bitcoin donations to the same cause continued to flow because there was no bank in the middle to receive the order. The government was reduced to asking exchanges to freeze specific addresses they could identify, a far more limited and difficult operation than calling a bank.
The programmable layer (CBDCs) is perhaps the most important contrast. Central Bank Digital Currencies represent the logical endpoint of the control stack: money that can be programmed with conditions, limits, and restrictions at the protocol level. Money that expires. Money that can only be spent in certain categories. Money that can be turned off. Bitcoin is the exact opposite of this vision. Its supply is fixed at 21 million. Its rules are set by consensus, not by central authority. Nobody can change the emission schedule, impose spending conditions, or program restrictions into your holdings. The monetary policy is written into the code and enforced by tens of thousands of nodes run by individuals around the world. No committee meets to decide whether to inflate. No regulator can impose conditions on how you use it.
This distinction matters more than most people realize. We’re not just talking about privacy or censorship resistance in the abstract. We’re talking about the basic question of whether your economic life requires ongoing permission from institutions and governments, or whether it belongs to you by default. Every other financial asset you can name (every stock, bond, bank deposit, or piece of real estate) exists within a legal and institutional framework that governments control. They can change the rules on taxation, restrict your ability to sell, freeze your account, or dilute your purchasing power through monetary expansion. You participate in the financial system at their discretion.
Bitcoin is the first asset in human history where that’s not the case. Not because of any legal protection (governments can and do regulate on-ramps and off-ramps), but because of how the technology works. The protocol doesn’t have a “comply with government order” function. It simply validates transactions according to mathematical rules.
Now, the obvious objection: “But you still need to buy Bitcoin through an exchange, and exchanges are regulated.” True. On-ramps are the weak point, and governments know it. CARF targets crypto exchanges specifically. KYC requirements at exchanges mean your initial purchase is tracked.
But here’s the critical difference. Once you withdraw Bitcoin to self-custody, you’ve moved from the regulated world to the protocol world. You’ve taken your wealth off the institutional rails that the entire capital control stack is built on. And unlike gold (try getting $50,000 in gold bars through airport security), Bitcoin can be moved across borders with nothing but a memorized seed phrase. No customs declaration. No wire transfer. No SWIFT message. No intermediary of any kind.
There’s a deeper point here that gets lost in the “number go up” discourse. Bitcoin’s value proposition isn’t really about price appreciation. It’s about optionality. In a world where every other form of savings is increasingly surveilled, restricted, and subject to institutional permission, Bitcoin gives you the option to step outside that system. That option has a value, and it increases every time a new regulation tightens the perimeter around traditional finance.
Think about what’s happened just in the last two years. Outbound investment screening went from nonexistent to covering most technology sectors. Cash caps were legislated across Europe. The FATF rewrote the rules on cross-border transaction surveillance. CARF closed the reporting gap on crypto held at exchanges. De-banking accelerated to industrial scale in the UK. CBDCs moved from research papers to 49 active pilots.
Each of those developments independently makes the case for holding an asset outside the traditional system. Taken together, they make the case overwhelming.
This isn’t about tax evasion or breaking laws. Most Bitcoiners pay their taxes and follow the rules. It’s about having a credible exit from a system that is, as I’ve documented above, methodically closing every other door. It’s about holding an asset that doesn’t require the ongoing cooperation of the banking system to retain its value and utility. It’s about having a Plan B that actually works when Plan A (trusting institutions to respect your financial sovereignty) fails.
And Plan A is failing. We can see it in the data. 343,000 accounts closed in the UK in a single year. Unconstitutional account freezes in Canada. Outbound investment restrictions expanding months after they’re introduced. Cash caps being legislated across Europe. Every year, the perimeter tightens.
Consider this question: if you lived in a country where the government had the ability to monitor every transaction you make, control where you invest, restrict how you use cash, close your bank account without explanation, and was building infrastructure to program conditions directly into the money itself, what kind of asset would you want to hold?
You’d want one that exists outside that system. One that can’t be diluted, frozen, programmed, or confiscated without your cooperation. One that works the same way regardless of which government is in power or what emergency they’ve declared this time.
There’s only one asset that fits that description. The capital control stack is the best argument for Bitcoin ever written, and the people building it don’t realize they’re writing it.
The Timeline Objection
Whenever I lay this out, someone says “most of this is years away.” But look at the dates:
FATCA has been running since 2010. CRS since 2017. Over 100 countries apply FDI screening today. US outbound investment restrictions went live January 2025. The EU cash cap is already law (2027 is just the implementation date). De-banking is happening at industrial scale right now. 49 CBDC pilots are running worldwide. The FATF Travel Rule revisions take full effect by 2030 but jurisdictions are implementing early.
The infrastructure isn’t coming. It’s here. What’s coming is the tightening: lower thresholds, broader scope, more aggressive enforcement, less tolerance for workarounds.
If you’re waiting for the dramatic moment to start paying attention, you’ve already missed it. The dramatic moment was spread across a decade of regulatory actions, each one too boring to make the news.
That was the point.
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I'm disabled and basically live off my SSI disability. Hand to mouth atm. Thought about monero and a trezor for this very reason but seems to me that unless you have enough money coming in that the government cannot restrict, you're in a catch-22. Not enough businesses accept crypto and once you actually buy something using it, your cover is blown automatically.
So it's easy to say you can hold private digital money in your hand. It's not so easy to spend it for everyday goods and services. This is like holding a private conversation by cell. Won't actually work unless everyone is doing it. Sure you and your buddy can encrypt a call but unless everyone is doing it it won't matter at all. In fact, better than digital money would be to take back our communications and make those private by default. THIS is the real problem. Money is the symptom of the communication crisis. You should check out dollar vigilante. He has an $11,000 donation only lightbulb-in-a-toolbox that he says works great too.
What you say is logical but in practice isn't. Not without securing comms 1st and foremost.