While currency traceability to a specific issuer brand is not a cure-all for all of the world’s ills, recent news stories continue to show its importance in relation to currency design. If, for example, madoffholdings.com and somebroker.com are each expected to publish corresponding currency outflow and inflow record copies, then it would have been much more difficult for Madoff to run an undetected Ponzi scheme for so long. The potential for fraudulent schemes will never be eliminated, but transparency and technology could help lead the way in deterring and catching such occurrences.
Traceability would also be extremely valuable in enabling targeted noncooperation with disreputable market entities. In light of AIG’s woeful neglect of its responsibilities , those who disagree with AIG’s intent to award bonuses to its executives could easily refuse to accept AIG’s currency brand in interentity trades – if currency is indeed to be traceable to independent currency brands. Without currency traceability, those who end up accepting any payment from AIG’s executives would be unaware that their products and services are being redeemed with inappropriately earned, anonymous currency.