The argument is that, if the money is just a database, the police will get it policed, or the bank will police it themselves, in an extra-legal way of just deleting or freezing accounts on request.
Like with regular bank accounts you mean? (Btw, Taler being just a payment system, you don't have anything but a regular bank account tied to it: you don't hold money through Taler anymore than you hold it on Visa: there's a small short lived wallet for transaction purpose but it's supposed to act like a purse, not a safe).
If you live in a country where the police can delete or freeze your bank account without legal control (or at all, even), then you're screwed and you can either change your government or find a new country, the fact that cash exists is not at all a big enough a guarantee for your freedom. At that point the government could also seize all your properties (including cash, something that the US police routinely does[1]) and/or keep you under arrest in secret prisons.
If you hope a technological mean (be it rudimentary like cash, or more modern like a blockchain) can help you protect your freedom against evil government, I have bad news for you. No technology can solve your political problems.
If you live in a country where the police can delete or freeze your bank account without legal control (or at all, even), then you're screwed and you can either change your government or find a new country, the fact that cash exists is not at all a big enough a guarantee for your freedom. At that point the government could also seize all your properties (including cash, something that the US police routinely does[1]) and/or keep you under arrest in secret prisons.
If you hope a technological mean (be it rudimentary like cash, or more modern like a blockchain) can help you protect your freedom against evil government, I have bad news for you. No technology can solve your political problems.
[1]: https://priceonomics.com/how-police-officers-seize-cash-from...