Looking at the secure element architecture

The seure element i the protected 'ledger; with associated spreadsheet style programming.  It has the characteristic that nothing leave or enters except by specific, controlled  gate ways inside the element.

Inside the parts are sort of, as follows:
A section for managing keys and generating tokens
A section for coin ledgers
A section for verification and security protocols.
A section for a temporary stack usable by a multi-step coin transaction protocol.

The verification section should handle timeout, essential on  all transaction protocols. It secures the bankruptcy protocol, and human not present protocol. And it has the default, general purpose token generator, usable for street cash. And it manages 'parameterization' to set up coin contracts. Verification also contains biomatching.

The keys are an interesting set of original keys and installed keys. There is at least one key that known one, man nor bot, knows except the secure element, and that key is unique to that secure element.  The rest of ther keys are organized by the pros, and the pros also install a set of generic key manipulation macros, used to define token generating protocols.

And the ledger contains mandatory double entry honest accounting.

Thre stack is where the SE has a spreadsheet unction that tracks user spending by significance with uncertainty containerized, it makes the Huffman tree to specified precision. Some of your S&L contracts require some imprecise estimate of your spending tree. The SE can collect product category IDs, and separae them, but beyond that, all context is provided by the app.  in general the app controls your bot activations, with the approval of your SE.  So, when you initiate auto trade, you tap the icon and thumbprint; that turns the bots loose. The SE only works with POS, kiosk,smart phone othewise   strictly two way, SE to SE, card to card should work. .

As a gate array

The SE is simply a device on the microprocessor memory bus.  It is a completely self contained unit, read and written with mem control hardware lines.
The entire thing could  be  embedded in the general purpose micro. It is really just a special kind of ALU, in techno speak, it is like having a special circuit to do some special floating point format. Making that gate array would be a lucrative business, liking owning the ARM design, for example.

Red/green and the other rules

Everyu interaction in the pit will generate an accumulation of the red/green; scaled by the SE spending pattern.  Along with 'no forgery, double counting' we have 'red/green'. Basically it gives the holder an unbiased estimate of the risk this tranaction applies totheuser balance sheet.  Except, of course, the concept of balance sheet is provided by the app.. The spreadsheet only knows it as a convolution of two distributions.

The SE and government

Everyone gets an SE, preventing that from happening is like preventing shoes, government is on board, do not sweat this.  Government's survival under the mass of debt depends on the options that the SE provides.

So, you can see, the SE is a secure congestion management system, automated.