Banknotes are useful. Not only do they provide their owner with a standard set of payments services, they also offer financial anonymity. How might a government price the anonymity component?
The fact that Anderson’s theory of money seems to fail the Bitcoin test forces us to question our long tradition of issuing new coins that contain precious metals, or banknotes redeemable for some other, already valuable instrument.
Debasement helps the mint defend against an aggressive counterfeiter.
Central bank digital currencies will be used by criminals. But central banks should still provide them.