Monero solves this.

Also, fraud is a thing. Cash withdrawals of such a high amount is unusual. Not saying he shouldn't have access, but also checks and balances right?

There's wire fraud everyday, imagine waking up and 2k is missing in your account because "you" withdrew cash.

I can understand the customer and banks perspectives here.

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15 years ago I was able to withdraw around 25k in cash. They asked me what it was for, I told them building works. Got my money instantly.

In reality, they are primarily doing this for control, and so people can't dodge taxes.