And savers may think the abolition of cash, coupled with a negative nominal interest rate on deposits, as an unfair wealth tax. There could also be broader macroeconomic instabilities triggered by the abolition of currency. The arguments about the risks of persistently low interest rates for financial stability are clear.
If the lower bound was removed, these risks would presumably increase, especially in the form of asset price bubbles and excessive leverage. To sum up, while abolishing cash may allow monetary policy to cut interest rates deeper into negative territory in extreme situations, this would come with significant costs of its own.