If you buy 3 barrels of grain and take it to Duane Reade and buy goods worth  3 barrels of grain, does this differ from a Bitcoin transaction?

Digital currency is coming. Banks fully expect money to become digital, with some betting that virtual currencies like Bitcoin will become mainstream.

This is cheery news for folks fighting drug trafficking, terrorism, corruption and organized crime. Cash has been recognized as crucial to funding illegal activity. Five hundred Euro banknotes are known as “the bin Laden” for its role in financing terrorism. It’s nearly impossible to trace bribes and stolen public funds when they disappear in briefcases of hundred dollar bills. Bitcoins Future     The Future of Money