>The banks have been pushing for a cashless society for awhile now.

Since the first loan was regulated banks have been pushing for a cashless society. Your comment is very much an understatement. It is the holy grail of the financial industry.

Because of the liquidity ratio. Banks are supposed to have 10% of their total lending in cash. This is to prevent a run on the bank.

No cash means banks can lend an infinite amount of money as they aren't bound to the liquidity ratio.

Basically it removes the ceiling from what a bank can earn as there can never be a run on the bank.