What would be the closest point to the Federal Reserve to return their notes?

[Elwar]

Right now if you buy bitoins, you give someone else your dollars and they give you bitcoins. That guy then takes your dollars and spends them, they circulate in the economy and keep the old war money economy going.

Jesus said "give unto Caesar what is Caesar's". What would be the closest point where we give our Federal Reserve Notes to the Federal Reserve in exchange for bitcoins?

Ideally everyone selling their bitcoins would sell it to pay off any debt that they have. If everyone did that and used Bitcoin for everything else, the banks would have no use for their money, they would not borrow from the Federal Reserve and the FRNs would be useless.

Or is it the income tax that is the closest our money goes to the Federal Reserve?

If it got to the point that the only time dollars were used was an intermediary exchange that got its dollars from the Federal Reserve and returned those dollars to the Federal Reserve and the rest of the economy was in bitcoins then the dollar would just be a novelty. But, of course, it will not be to that point for a long time. What is is the closest we could come to that though?

[GrandpaTime]

Yes, this really cuts to the point. I'd say you're right, paying off any debts would be most direct. After that, buying bitcoin at the government auctions for seized coins perhaps?