[testfoobar]

Cash money is replaced at face value if it is damaged - presumably the owner of the cash has an interest in seeing it kept safe.

But unless the Treasury is notified and presented to their satisfaction with damaged bills for replacement, by definition, there is no way of tracking destruction/damage to cash money.

The amount of cash in circulation is tracked: https://www.federalreserve.gov/paymentsystems/coin_currcircv...

In the Euro zone - with negative rates, holding on to paper money can mean a positive return: "German Banks Are Hoarding So Many Euros They Need More Vaults" https://www.bloomberg.com/news/articles/2020-01-31/german-ba...