Cash counting machines in banks scan and record numbers to find bills that have already been flagged (such as those stolen from banks/ATMs), but that process is unrelated to the crediting of money to your account. General cash tracking is hypothetically possible, but it would not be trivial to implement.
Well not _you_ but bills do get flagged if they're involved in crimes (like kidnapping or robbery). So when they're deposited in a bank the FBI can track the _relative_ location of criminals.
Just like on the tweets mentions but zooko didn't reply to; what about just having a zaddr cleaning those coins? KYC/AML already exists on (most) exchanges.
I don't think so, you can exchange your money through services like ShapeShift where it remains anonymous at the other end and you can make the exchange to fiat money via Localbitcoins. There are many other alternatives we can think of.
I think it would be good to have an optional KYC/AML attached to cryptocurrency transactions. In this way they can be more popular and more connected to the regulated world.
> it would be good to have an optional KYC/AML attached to cryptocurrency transactions
This is already the case, minus the optional part [1]. Broadly, I'd guess anyone involved with an unregulated money transmission operation is one pissed-off D.A. away from serious jail time.
https://mobile.twitter.com/zooko/status/863506504518914050