Woah. Hold up. There's no KYC for holding anything. There's always been KYC for obtaining fiat. For withdrawing fiat. For depositing fiat. For getting paid in fiat. For paying other people in fiat. It's not the holding at issue, it's the transacting.
> ...and transactions above 10k are on the honor system for cash purchases.
No, they certainly are not. Any withdrawals or deposits of over 10K USD at a bank will require an ID and get you a CTR or SAR filed. If you tried to get 100K in fiat you will almost certainly get a CTR or SAR filed on you. You'll probably get a call from a bank manager, a compliance officer and/or someone from FinCEN. Ditto on the deposit.
In fact, transactions under 10K also often get CTRs filed. [1]
If you aren't withdrawing it the person who did will get the filings.
> There's also minimal checking of those that leave our borders; someone could easily cross into Mexico with 100k in a breifcase of Swiss Francs and no one would be the wiser.
Potentially, but unlikely. You cannot get 100K of cash lawfully without presenting ID. If you did, you committed a crime to get it, it was probably laundered, and you probably paid 2-10X that amount to launder it. You're probably a criminal.
To wind up with an undocumented, untraceable 100K in a briefcase, either you or someone else committed a crime.
This is part of the reason people do not cross borders with 100K in cash. It's a crime to do so without reporting it, so if found it'll be seized. It's trivial to find $100K in cash strapped to someone or on an Xray.
They tend to instead obtain gift cards and move portfolios of that.
> To you; to me it's built on the tree of liberty.
No, crime is not liberty. It's crime. Crime is the violation of my liberties and the code of civil society because you think rights you don't have are more important than rights I do have.
Again you completely ignore Wise as a much better, less volatile solution to the problem.
The problem you're describing, and the world you're describing, feels a bit like finance fanfic.
> The existing problem was that people would show up in cash in person, and often without either parties being vetted. The darkmarket did not totally solve this problem but it did help it, by creating a rating system and allowing people to buy items without needing to put themselves in the vicinity of a potentially dangerous drug den.
No the issue with drug legislation is it impinges on the freedoms of average citizens and directly harms them via prison. A darknet market does nothing to alleviate the issue at hand.