Yes, because your buying into their FUD. Getting rid of physical cash would make it far easier for central banks to go negative with interest rates. Why would they do this? Because the idea is to force people to spend money to prop up the economy instead of government looking to see it itself is the burden through excess borrowing, taxation, and regulation. Also, with a purely digital system you could not escape negative rates or bad money policy because you don't have it in any real sense.

The real threat however is they could simply ban the sale of any good or service by flip of a bit. Let alone the surveillance possibilities, everything you buy would be logged and could be used against you at a later date and not just by government officials but in any court of law or hacker. They could impose fees or penalties and there would be no escape from it. You could not simply pull your money out of the bank because there is no physical representation to hold.

Cash is freedom. Freedom to associate and support whom you want without trace. That is not a freedom we should ever give up lightly.