Trustless physical cryptocurrency

A system for use of a physical cryptocurrency comprising:

• a physical currency, the physical currency denoting an asset and comprising a processor, wherein the processor includes an API for accessing data on the processor;
• a cryptographic key generator hardcoded in the processor, the cryptographic key generator configured to generate a private key and corresponding public key;
• the private key, stored in a memory of the processor such that the private key is not accessible via the API;
• a communications system in the physical currency for transmitting and receiving data from a remote device;
• one or more sewers;
• the remote device, wherein the remote device is communicably connected to the one or more servers comprising a smart contract on a blockchain;
• the smart contract, wherein the smart contract stores a copy of the public key and comprises code for transferring the asset from an address on the blockchain to a user-specified destination address;
• a digital signature generator hardcoded in the processor, the digital signature generator configured to receive a digital challenge generated by the smart contract, sign the digital challenge using the private key, the smart contract containing code to cryptographically verify that the private key associated with the public key stored in the contract was used to sign the digital challenge, the smart contract configured to transfer ownership of the asset when presented with a valid signature.