For example, if cash is used to pay for a hotel room that is considered by federal authorities to be “suspicious activity” that should be reported to the government.  Of course it isn’t against the law to pay your hotel bill in cash just yet, but according to the government it is something that “terrorists” do, so it needs to be closely watched.

Governments are the biggest terrorists. So, cashless wouldn't also work for their shady dealings. How would they then cover / hide their black-ops ?