Governments instead of giving us better options than cash they are trying to make cash less available. This doesn't improve the situation for anyone. If they were really on the people's side or want to pretend they are, they ought to make free bank accounts: no fees at all. You leave money in and take out as you like. Self-limited credit cards, maybe people feel better with a $100 limit rather than $500 limit? Let the user set it.
You probably don't want to carry around your bitcoin wallet if you can help it. :)
The truth is that the cashless policy is a policy meant to favour bank in the long run due to bank charges that will be deducted from account and that implies that Governmrnt are the one that will benefit from it due to tax that will be collected from the banks.
I do concur with everything you wrote. If a person in your community would like to cut out banks completely, and instead use crypto as your bank account, then in order to go from fiat to crypto, you'll lose like 10 or 15% in the analog of depositing or withdrawing!