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> Or a currency conversion machine where you can shove USDs in the slot to get EURs, but if you shove EURs in, to the shredder they go,

This example is kinda funny. If your bank notes were accidentally damaged in germany, you could send them to the federal bank and have them replaced as long as more than half of the bank note can be reconstructed. This is a service intended especially for victims of fire or flood catastrophes, though dog related accidents aren't unheard of either.



AFAIK it's the same in the US (the US mint is in charge of both producing and destroying money), because treasuries want to keep track of the physical money supply.




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