The short answer is, it isn't.
The long answer is, under 18 U.S.C. 331, "Whoever fraudulently alters, defaces, mutilates, impairs, diminishes, falsifies, scales or lightens any of the coins coined at the mints of the United States... shall be fined... or imprisoned not more than five years, or both." Here the key word is fraudulently. It is illegal to tear it and piece it together to make it look like a $100, but it's not illegal to shred or burn it just for fun. It makes no actual mention of paper currency, but I assume "coins" is generalized to all currency.
Yes. It is illegal to deface it, because it is considered government property.
yes
Absolutely, they'll be worth a whopping $2.00 But I cannot see how they can deface the $2 bill. By the governments rules, you can't spend that bill anymore.
It is illegal to deface public property in the state of New Jersey.
Most countries have a policy making it illegal to deface the currency of that country. I would suggest that if you intend to make a timepiece for personal use and not to make a business out of it, you should be safe.
No, but why would you want to?
Only if it belongs to someone else.
Depends where you are. In most countries, it is totally illegal to deface currency. In others, it is illegal to deface them up to the point where they can no longer be used as currency.
In most countries, it is illegal to deface, disfigure, modify, mangle or mutilate the currency of that country.
It is generally illegal to deface or destroy currency, including silver coins, as they are considered government property. It is important to adhere to regulations and laws regarding the handling and treatment of currency to avoid potential legal consequences.
No they check it over but don't lie that its real its illegal
Counterfeiting is illegal, buddy, ask the S.S.!