There is no reason to prefer cash is there is deposit insurance for the banks

Bank credit is taxpayer credit; there is no difference between being owed money by the bank and by the Government, if there is deposit insurance.

If the (licensed) bank owes you money, then the Government owes you money. Banks might not be able to 'print money' in the conventional sense, but the Government can. A bank is (part of) the Government if it can cause inflation, enabling people to pay their taxes more easily. Cash is not more valuable than bank credit if deposit insurance exists.