On validation, the issuer will deposit the value of the coins into the recipients account or, at the option of the recipient, generate new proto-coins, possibly in different denominations, and return them to the recipient. The recipient now has new coins in his preferred denominations that can be spent. There are two levels of anonymity for the recipient. For the truly paranoid, the recipient can use different ISPs for each transaction. In my opinion, this level of anonymity should be sufficient for most business transactions.
All authority is assumed authority.