You could hack into a system like that and screw it up. Security agencies and software companies are aware of the vulnerabilities of software programs. So it would be very vulnerable. Paper money is also vulnerable (you can steal and rob people) however it is not as centralized as computer chips.
Plus it would be a civil liberty violation
Plus it would anger all of the end timers who feel it is a sign of the anti-christ
Plus it could be gotten around. Other forms of exchange like bartering could be used. A drug dealer could find ways to launder his income via bartering if he needed to.
I realize counterfeiting is a problem today (North Korea has an advanced counterfeiting ring involving US $100 bills). But I think it’d be worse under this system. North Korea counterfeits money. Organized crime counterfeits DVDs and software programs. I think this system would be even more vulnerable.
However there are benefits. The global underground economy (drugs, human trafficking, prostitution, stolen goods) is over half a trillion dollars a year. So maybe a better tracking system of small purchases would put a dent in that.
Either way, aren’t the big transactions in the global economy all electronic anyway?
In the US economy, there is only $908 billion in actual cash, globally it is about 4 trillion.
The rest is stored electronically. And the US economy is about 15 trillion and the global economy is about 60 trillion. But there are endless trillions (probably quadrillions) worth of infrastructure and goods on the planet. All the buildings, machines, infrastructures, equipment, etc.
The point is that most of the world’s wealth is already exchanged in a traceable fashion from what I can see. So I don’t think this would make a big difference unless it came to combating the underground economy. However I bet they’d find a way around it.