There is a couple of reasons for a completely digital currency system. First, there is no need to print, or mint money. This will save the government millions of dollars in otherwise wasted money. For example, it cost 3ยข to make a US penny. However, with sales taxes, there would always be something like $7.38. This will mean that you would need at least 3 pennies if you were to give exact change. By moving to a digital system, this will mean that there isn’t a concern of wasting money to produce pennies. It is all digital, and just a matter of moving $7.38 from one account to the other account.
Next, a bad actor can’t mug someone for their money. Why, again – there is no physical currency to steal. This will reduce the amount of thefts that will happen. With that in mind, this crime reduction is for the best. By using AI, and actual monitors, the digital banking system will be kept safe by justifying every transaction. One can not simply have money appearing in their bank account.
There is also a reduction of chance for illegal entry into the country. One can’t sneak in the country, work an under the table job, and get paid cash. They must have a bank account if they work in the country. In order to get that bank account, they have to provide that they are allowed to be in the country. This is much harder to do if they aren’t supposed to be in the country.
And last, it provides a paper trail for illegal transactions. Unless 2 people wishes to barter, there is going to be a trail in one sending money to another for that illegal gun. If one is regularly paying someone money, then there is a chance for illegal activities going on, and something in which the police’s anti-crime department will want to investigate.