If the authorities control currency digitally and implement social credit, some people will need Monero to feed their families. An entire marketplace will become necessary for non-conforming populations.

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So if there are social outcasts living on monero and they trade it to people living “legitimately” for resources, what would they then do with the monero?

I suspect an economic dichotomy will develop with a group of people parallel to both economies. Much like a Venn diagram with a white and black circle overlapping to form a grey shape of varying size. Somewhat similar to what we have with cash and cards today.