Digital money definetely eliminates the paper money involved in the system. But would it make the system completely cashless is the main question. Well, it can definetely bring in a "less cash" drive than the cashless one. Offcourse achieving a cashless society is the bigger goal but we need to wait for that for a while. For now, less-cash society is whats being offered with the advent of digital money, and the whole digitization process alltogether.
Offcourse the cryotocurrency will add to this in a good and substantial way as it is based completely on digital money, created and existant over the cloud. This if regularised in a more advanced and accepting way, will definetely pave ways for cash-less economy and will eliminate problems assiciated with paper money like theft, laundering, corruption, etc.
Good point, but I wonder if the powers-that-be actually want a truly cashless society. It has some benefits, like efficiency (Multinational companies will just pay for access to a database of users rather than doing market research) but it will prevent politicians from doing dirty under the table deals. Apparently when Obama did the Iran deal he had to fly several airplanes over there packed with Francs, Pounds and Euros (no dollars of course, that's sanctioned) in order to get it signed. How will they do that in the future? Send over bitcoins? Those are still traceable if you look hard enough.