Because it works... The level of counterfeit currency is readily measurable. Currency can be withdrawn and replaced. Individual stolen notes can be tracked. Counterfeiting of the dollar and the euro today is a relatively minor problem
https://www.ecb.europa.eu/press/pr/date/2025/html/ecb.pr2502... https://www.bankofengland.co.uk/statistics/banknote https://www.cranecurrency.com/news-insights/85-decline-in-us...
How do they track counterfeiting of digital currency? Most of the money supply is not physical but digital.