Encryption and the smart cards

My rules prove the sandbox does not bias toward illicit activity, any more than the previous. All communications in the sando are cash transactions, and hard to encode but wth one exception.  Coinage has to be configured, but each card has the native null coin, which is really the fundamental transaction:
Here is a number. 
Got it, thanks.  

This ability is native and all transaction protocols inherit it.  It is another exception to the rule, a hole in protection. I suggested that null cash only be used for counterfeit detection, anti-fraud transactions. Thus, all coinage requires configuration of the card, and thus connecting to the smart layer where the contracts and apps are visible to government.

Government will want to be part of fraud detection

And here it gets tricky.  We would like a separate channel for anti fraud messages, each card ready to pass them along the null channel. Fine, but then what might the card look for locally for anti fraud? Looking inside the card, with government as our partner, is careful stepping, for sure. The card has to self-examine and report its validity.