What’s the point of bearer bonds and how do they work?
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Bearer bonds don’t really have a point, they are just the way financial instruments were long ago (like cash where possession is ownership rather than having ownership recorded and tracked).
Bearer bonds worked by presenting a physical piece of paper which could be redeemed for the cash they promised to pay (so the owner would take them to a bank who would later present them to the US treasury). They’ve all long since matured today, so if you tried you would likely attract the attention of a lots of federal agents wanting to ask you a number of questions regarding why you have that bond, as the main use of bearer bonds is they’re a single piece of paper that can be worth many times the largest currency bill which makes them ideal for transactions where both parties don’t want the government to know anything about the transaction (like an illegal drug transaction).
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