I dont see anything wrong with what they have said. We still need cash cause its very important. There are lots of things you do today that requires payments being made in cash. And moreover, physical payments are the real money we talk about, technology is just a way of making things easier, or havent you read that before? So they are right.
I think that any state will say the same thing if it sees that the population is too keen on cryptocurrency. National paper money of the states will always go and no state will ever give up on them. On the one hand, the Chinese government always warns its citizens about possible material losses due to the high risks that cryptocurrency carries with it, and on the other, it protects its own currency in order to prevent inflation and the economy from falling.