[balola]

A unique challenge for US dollars is that as the defult choice of all kinds of dirty money, it has a huge laundering problem. This is not the case for Chinese Yuan and, I presume, Indian Rupee.

In China the gov doesn't care about any amounts of transation or cash, you can walk in banks and deposit millions of dollars of cash and will be treated as VIPs, "all-cash-bill" buying of condos is normal. I think it kind of has something to with corruption, since you don't know who is behind this money and what trouble will get you if you dig too deep.

Also the protection others mentioned, once the money got to other accounts, which usually happens instantly, it's almost impossible to get it back.

[harichinnan]

Google for Hawala.

[tebura]

This is not true in India. Every transactions bigger than 50,000 needs pan card. RBI monitors all big transactions. You can't deposit any big amount in bank without mentioning proper sources else Income tax dept enquires you. The Indian way of doing corruption is Hawala (gold mostly). As Modi govt did demonetization, all old currency became obsolete, wiping huge black money.Now nobody wants to launder money in cash. Govt also tried to bring adhar card system similar to US security number, so everything can be tracked but it was opposed by court.

[stjohnswarts]

It's going to be a looooonnnng time before Americans voluntarily turn over all their buying power to a government controlled payment system that takes away all consumer privacy. I still pay with cash myself when I can.

[hesarenu]

I don't think the poor in India are worried about Govt knowing about their 5-10 rupee purchases. Vast majority would be worried about where their next meal/income would come. Privacy would be for the rich to worry about their income getting reduced by Govt taxes.