[swift532]

You achieve the first by having a distributed, decentralized, fully censorship resistant base layer in which the rule set is more or less like the current Bitcoin rule set.

You achieve the second by building upon this base layer. Just like how in the real world the base layer is physical transfer of cash and assets (not very reversible), and we have a financial and legal system built upon that (to simplify, it's doubtful how relevant physical transfer is any more).

[tsimionescu]

But the only way to do the second is to keep a separate 'ledger' associating real people/companies with network wallets, and to ban the use of wallets whose ownership is not known.

And this automatically brings back a lot of hassle with verifying paperwork, it again allows people to be barred from the network, and it again prevents people withput paperwork from owning currency.