Block chain secures the hardware keys, each smart card containing some set of hardware keys embedded in a noise gate array. These cards find their place in the security graphs, they are block chained according the key density. Cards with more valid key and less noise are dangerous, highly guarded and frequently expire. Under them, in the chain, are the keys less densely packed so reverse engineering is more costly, counterfeiting less profitabler, These card may have hardware limits on exchange sizes for some standard currencies. Consumers use these less dangerous cards.
A counterfeit card will eventually be stranded in the block chain and be detected. At the foundry, the keys are generated by machine, untouchable by humans. Think of paper cash with serial numbers. Give the paper a little intelligence, and it can organize its set of serial numbers into a decode/encode graph. That is what happens. The encode/decode graph will bulge here and there as cards expire and new cards enter. The forensic cops watch this graph closely, it is public knowledge.
Hence the encryption fear is unfounded since humans will almost never gain access to the encryption method or keys; that is equivalent to terrorists using counterfeit money to send messages. The entire set of transmissions is limited by the protected software, the the issue becomes, make it work like a programmable calculator. One simple way is to embed a hardware protected python interpreter, then let the bankers program the saving and loans for billions of humans.
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