Now that I have discovered an exquisite counterfeit-resistant note that requires 2 signatures to be redeemed, I am interested in discussing ways to reduce the need to electronically verify the note to the point where anyone who receives the note will instantly know that it is valid. In this way it can be used like cash.

1) Before the note is circulated, it will need to be loaded so that no one inadvertently receives an empty note. In order to remove arbitrary trust, it will need to be guaranteed at face value by the issuer - probably via an escrow contract. A government entity with unlimited funds would be ideal.

2) When a bill is redeemed, it will need to be irreparably destroyed in order to eliminate circulation of the emptied note. This will also require an escrowed guarantee of some sort, preferably automated via oracle as well. A notary or other verifiable witness will likely be needed before the second signature is made.

Solidity?

Tapscript?