Entering the serial number is the equivalent of the gift card activation step. It prevents theft and black market resale of a giant stack of unissued tokens.
As to the rest of what you wrote, isn't that exactly what I already described? The only notable difference is that your scheme permits non-government token providers.
As to the rest of what you wrote, isn't that exactly what I already described? The only notable difference is that your scheme permits non-government token providers.