It appears that the Israeli government is looking to move the Israeli economy to a cashless economy. The link mentions other nations are considering this as well. The Israelis are uaing tax revenue, the black market economy and money laundering as excuses. While those are good excuses, anti-money laundering efforts sound weak when banks caught red handed with cartel money get slaps on the wrist. There is something deeper this protects governments from: a loss of confidence.
Zero Hedge rightfully harps on the surveillance capabilities a cashless society would grant the government. A central authority could track the transactions of any questionable individual, preventing anything subversive. The digital aspect would be a much easier sell after decades of widespread credit card use and technology advancements at the consumer level. This would also fully actualize the printing press = a computer idea Bernanke discussed years ago.
In a cashless society with a central bank, the unit would be infinite in quantity. It would be a reverse bitcoin. This would be easy to manipulate and expand to cover any problems in the system from big players. In a confidence crisis, people go to hard money, but in the absence of it or stratospheric cost, they go to cash. This first move is a signal of lost confidence. Might a cash heavy world spark not just a loss in the government's money but the banking system? Cashless solves that. Bank runs are eliminated as a concern.
This will be interesting to watch because the trends are moving away from petrodollar security. Outright collapse may not happen but change will come. Israel may not pull this off, or they might ans act as a guinea pig for the rest of the dollar system. A cashless economy would be a wild step to keep the current aystem in place just a little longer to keep the current elite in place and farming the population for money.