it’s more like the bits are representing physical cash, but in the future the physical cash will represent the bits. Most money is digital even now and even the physical cash is mostly just paper money, not precious metals, not even the coins probably have their worth in metals, so it makes sense.
My biggest problem is that everything goes under the ECB, not to the national level central banks. The “they can see where and how much did you buy” is mute point, since they alredy could do that. And it’s even worse when there are private companies that sell your info for profit.