> To exchange the coin for cash, any vendor or individual would have to exchange the coin at a bank while showing identification, and the bank would record the transaction alongside the individuals name and reason for spending the money. The bank would then give the individual cash, and the government would in turn give the bank cash. 100% of government spending would be fully transparent to the taxpayer, they could see which departments received how much money and what they spent it on.

This would have no impact whatsoever on the fraud in this article.

The person claimed they were spending money on approved purchases and provided documentation to support it. The government then gave her the money.

Adding crypto would change nothing, other than making it more convoluted.