If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
For now, NO. The lesser physical the thing is, the harder it is to control since it has no actual form. And everything that goes out of control would lead to chaos. Digital currency is already being used and is accepted widely but, its sytem still has to go through a very long process before it will becone stabilize. In this digital era, evrything is almost possible and this includes the negative side. Security and economic stability would be greatly affected.