A currency is a social construct. It has no inherent value beyond what people who trade in it place on the currency.
As a result people don’t want a currency whose rules of trade are defined once and it’s unable to respond to actual world events.
If you have a currency that is indeed responsive to changes in the world then there needs to be someone who you entrust with making those changes.
At that point it doesn’t matter whether that currency is digital or cash based. I mean, in actuality even the USD digital trade is order of magnitudes greater than its physical trade.
The U.S.’s monetary institutions and its role as a trade promoting superpower is what makes the dollar stronger. Now that those institutions are not as reliable anymore and the U.S. is clearly not a trade promoter anymore, the dollar is definitely at risk.