IF (a big if) this happened, I and everyone else with half a brain would use any excess digital cash we had to buy stocks, gold, art, rare coins, gold, bitcoin, and dutch tulip bulbs. Damn, I missed that last one by a few years.
We'd also stock up on non-perishables and we'd barter with neighbors. We'd be growing more of our own food.
And I CAN store gold, diamonds, rarities etc. under my bed, in my safe, sown into my clothes, hidden in my shoes, buried in my back yard. All of what you think will happen is resurrect age old habits.
Habits that some of us already have, by the way.
Nor would this affect all of us in the same way. People drawing social security will not feel quite the same impact as those payments are indexed to inflation. People who already have high debt will love it and the smart ones will put their saved profits into the things that will rise with inflation.
So who would this hurt? Not the poor, they have to spend quickly anyway. Not the wealthy, as they will move their assets as needed. Not the savvy middle class for identical reasons. Not the professional class as their employers will keep their salaries in pace and look for other compensation venues.
It will only hurt fools. IF IT EVER HAPPENS AT ALL.