There is a distinction only if you mean holding all your cash in your own safe, when you say "cash". You will need to get a bank account anyway as transactions

There is a distinction only if you mean holding all your cash in your own safe, when you say "cash". You will need to get a bank account anyway as transactions of a certain kind and size (like getting your monthly wage and buying a car) need to go through a bank. There is zero practical difference if you withdraw from an ATM every other day or more often, so you can pay cash.