The U.S. has a legal tender monetary system. This means that our money is defined by law. Specifically, 31 USC 5103, which states:"United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues." Nowhere in U.S. law will you find bank administered accounting entries designated or even acknowledged as being a U.S. money/currency. Neither the Federal Reserve or the banks possess the legal authority to create U.S. money/currency. This means that, there is no such thing as "digital dollars".

Bank deposit accounts are nothing more than bank managed records of legal claims held by account holders against the legal tender money (checkable deposits) that is supposed to be in the bank's vault. That's why deposit account holders are designated as "the creditor" and banks are designated as "the debtor" in all deposit account contracts and in U.S. law. A deposit account (a.k.a. record of bank debt) is not, and cannot be money in and of itself. People utilize the amount credited to their deposit account (bank debt) as a bank-administered line of credit. This line of credit is simply transferring the bank's legal obligation to pay between the account holders and between banks, and what the banks owe is U.S. legal tender dollars upon depositor demand.

Taking the above facts into consideration, what does a 'ban on cash' really mean? Well, for the banks it means 'Debt Jubilee' as the banks will be relieved of the legal obligations to pay legal tender dollars to their deposit account holders upon their demand. This works out to be over an $11-Trillion dollar gift to the banks from their depositors. Isn't that wonderful?

As a bonus, the ban on cash also means that all banks will be 100% reserved and because they now create the medium in which all debts are legally paid, they can never go broke. And because U.S. laws will have to be amended to reflect the new 'digital currency' as the new legal tender, this would also mean that the U.S. government, which can pay its debts in legal tender (31 USC 3123) and all U.S. bonds are payable in, and are used to create, the new legal tender, U.S.G. debt will be automatically paid in full. Isn't that marvelous?

Anyway, I explain this and other monetary matters on my blog with source links.
http://carl-random-thoughts.blogspot.com/