Despite the average American holding only about $60 in cash, the per capita amount of U.S. currency is over $7,000. This is because the vast majority—as much as five-eighths—of physical U.S. currency, particularly $100 bills, is held offshore as a global store of value.

Governments earn "seigniorage" by issuing physical currency, which functions as an interest-free loan. For the U.S., the $2.5 trillion in circulation represents a massive, interest-free debt obligation, creating a powerful financial incentive to continue printing large bills despite their use by criminals.

Despite banks spending vast sums on compliance, the criminal economy's share of global GDP remains unchanged since the 1990s. The regulations are burdensome and expensive but have only managed to prevent the criminal sector from growing *faster* than the overall economy.

While consumer cash transactions plummet, the circulation of large banknotes like the $100 bill is at an all-time high. This "paradox of banknotes" shows that the vast majority of physical currency isn't used for legitimate commerce, but as an untraceable tool for the global criminal economy.

Like in the legitimate economy, the U.S. dollar is the "lingua franca" of international crime. Despite other currencies offering higher-denomination notes, the dollar's superior liquidity and universal acceptance make the $100 bill the preferred instrument for criminal transactions worldwide.

Each time the U.S. uses financial sanctions, it demonstrates the risks of relying on the dollar system. This incentivizes adversaries like Russia and China to accelerate the development of parallel financial infrastructure, weakening the dollar's long-term network effect and dominance.

As financial assets become increasingly digital and secure, criminals pivot to high-value physical goods. The recent boom in art and artifact heists suggests that as one area of crime becomes harder, criminals shift their focus to softer, tangible targets like museums and historical sites.

While imposing sanctions via the dollar system can pressure adversaries, it's a "caustic tool." Every use pushes more countries, including allies, to de-dollarize to avoid similar threats. This accelerates the decline of the dollar's reserve status, eroding the very power being wielded.

While money, people, and goods move frictionlessly across the EU, enforcement remains siloed within national bodies. This allows criminals to exploit bureaucratic gaps between countries, as regulators in one nation have little incentive or authority to pursue issues in another.