But surely you must realize that there's more to money than just paying bills. Japan still has a strong cash culture, but even there people put their money in a bank. A cash society cannot be resilient to an evil government if you consider that said government could theoretically freeze funds at the bank level. In fact, this scenario sort of happened in Brazil in the 90s, and that's a country that had a very large portion of the population that was unable to transact digitally (because credit cards/ApplePay/etc weren't really a thing back then and a lot of people were poor to begin with).

If you want to argue for a world where said attack vector isn't possible, then you're implicitly arguing for a world where people literally stash money under their mattress as a standard model of security, but that implies constructs like mortgages can't exist. Point being, how money is represented has a big impact on how society is able to function.