> What you have in your bank account is not digital cash. It's effectively a note that the bank owes you cash. Yes. > as far as I understood without physical

> What you have in your bank account is not digital cash. It's effectively a note that the bank owes you cash. Yes. > as far as I understood without physical money there would be no bank accounts. I'm not sure why that would be the case. I've never withdrawn a physical dollar from my bank account. > how could an economy go 100 percent electronic banking, if banking is built on the existence of physical cash? This is the missing link. I don't think that's the point of CB digital currency. The point of CB's digital currency is to reduce the indirection between policy and business/consumer behavior. NB: this includes both fiscal and monetary policy. So e.g. provides a mechanism to cut the retail banks out of things like covid relief funds.