Just stuff the paracord into a bag of the appropriate size. Leave the outer end in such a way that you can grab it easily. When you pull on that end, it will emerge from the bag easily, with no tangles. I use this technique on climbing ropes that are routinely up to fifty meters long, and it works flawlessly. I understand it has been used for ropes up to 3000 feet long (at which point it is doubtless difficult to find a bag that is big enough).
Bag stuffing is easily the most civilized way to deal with cordage or rope - much less likely to tangle than coiling.
Interesting, this is my first time hearing about this. The only downside I see is someone tampers with your system who doesn't know the deal. If they take out the rope, mess with it, and stuff it back into the bag, I think you're screwed at that moment. This could be a catastrophic problem if the rope is 1,000 feet long or so. For a valid reason, my stress level would be high if I merely saw someone casually examining the bag.
MODIFICATION: When stuffing in the rope, have something that secures each end in place to the inside of the bag. Make it so that someone cannot just open the bag, dump out the entire rope and stuff the rope back.
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