After reading about BitCoins, I can't help but contemplate the idea of the a government withdrawing paper money and bringing all currency transactions digital, via a bitcoin-like method where every unit (1 cent, US, for example) has an id and an owner.
This would theoretically help eliminate theft, tax evasion, money laundering, etc.
What I want to know is:
I've read articles about the capabilities of some extremely powerful mafia-style cyber criminals that can basically break into anything. Is an entity such as a government capable of maintaining the security of such a system?