I think bank-issued digital currency would be worse than government-issued currency
In the U.S. during the 1800's, there were over 8,000 private currencies. Banks, or pretty much anyone, could issue paper notes. This situation undoubtedly led to some interesting travel experiences, exchange rates and collapses, but mostly I imagine it led to a lot of confusion.
If you steal from one author it's plagiarism; if you steal from many it's research. -- Wilson Mizner