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The use, storage, and transfer of fiat currency are governed by laws around:

Anti-money laundering (AML)

Know Your Customer (KYC)

Banking and financial regulation

Capital controls in some countries

And basically, if the central bank says you can't do it, they can put you in prison.

Your moral judgment on the subject shouldn't depend on this

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You're right. You used the word 'should'. The answer is yes. People can do whatever they like.