I don't think that would be a common occurrence but it would probably happen at least once. How would you go about getting your money back or tracing the thieves down if they can take the money they stole and convert it to physical cash at an ATM 5 miles away from you?
There would be little recourse other than this ebanking system refunding you your money directly.
New systems create new opportunities for crime, how will we prepare ourselves for that before we are forced to live with it?
Depending on how the system is designed, such a refund may not be possible. I'm guessing that an offline-enabled ecash system would not support revoking and reissuing currency units, so you might be SOL.
> What would the recourse be if thieves just broke into your house and made you transfer everything over from your main account?
I want to say that this is no different than if you kept cash, gold, art, jewelry, etc., in your house, but ecash would be uniquely easy to conceal and smuggle across borders, so ecash would be a more attractive target for thieves than even an equivalent amount of gold. I'd love to see a deeper discussion by the lawmakers sponsoring the bill because I suspect there is no great answer to your question.
I don't know how they would provide any level of protection for your assets that you didn't provide yourself. If they figure that out then I'm all for it.