Digital money is not cashless

Digitalisation of money and the future of monetary policy

What would a completely cashless economy imply for monetary policy? First, it would remove the zero lower bound for interest rates. This would increase the central bank’s room for manoeuvre in deep recessions, above all in a deflationary environment. Second, it would remove the risk of a general bank run, as depositors could only switch their deposits between banks but not totally out of the banking system. This would reduce the need for the central bank to become active as a lender of last resort. On the other hand, one could argue that if savers can no longer withdraw their deposits, this could reduce or even remove the market discipline for the banking system.

This is a professor of monetary policy in Germany.  He has not gotten the briefing about digital cash. 

We can make digital cash because we can make counterfeit proof plastic cards with a battery and chip inside.  Someone who knows this guy and reads this blog, give him the briefing. Digital include bearer assets, they never went away.