For physical cash, banks don't give a hoot, and their insurance doesn't either, because the sums stolen are so small.
Even the dollars a bank has uninvested, they are stored electronically, and it's very easy to undo electronic transactions. Plus, the limiting factor on stealing electronic money from banks is finding a stool pigeon who will do it with cash.[1]
With a system where transactions cannot be undone, you need life-or-death-level security on the entire holdings. No insurance company is going to underwrite a policy of "there is a completely unknown chance of 100% loss."
[1] A PDF of this was on HN recently but apparently I did not bookmark it. Help a brother out?
Even the dollars a bank has uninvested, they are stored electronically, and it's very easy to undo electronic transactions. Plus, the limiting factor on stealing electronic money from banks is finding a stool pigeon who will do it with cash.[1]
With a system where transactions cannot be undone, you need life-or-death-level security on the entire holdings. No insurance company is going to underwrite a policy of "there is a completely unknown chance of 100% loss."
[1] A PDF of this was on HN recently but apparently I did not bookmark it. Help a brother out?