And that is my point. If it cannot be realistically enforced then it's just a massive inconvenience. They should show a measurable benefit statistically. Are terrorists routinely caught at the borders with digital currencies on mechanical devices? I'm not exactly sure what statistics or data is used to inform the creation of this policy but even if terrorists are crossing the border with Trezors, well if you inspect them wouldn't they simply use brain wallets?

I cannot figure out how they'll inspect someone's brain and at what point does the cost of attempting to do so outweigh the benefit? In the case of a known terrorist crossing the border I can see the point but those cases shouldn't be every single person crossing the border otherwise it becomes a hassle if cryptocurrency ever becomes massively adopted.