[graemep]

> Countries that don't collect much tax have real problems with both of these.

Nothing like as bad as the potential problem of your economy grinding to a halt.

There are other ways to deal with tax evasion. Those countries usually do not have good systems. If you investigate properly, design tax laws properly, chuck a few people in jail, etc. the problem can be solved.

Not using does not close loopholes, or prevent corruption, or stop people sending money offshore.....

> The key phrase being "for emergencies".

If you go cashless you will not have the infrastructure to use cash in an emergency.