I don't worry too much about government surveillance. Bureaucrats are naturally nosy, the strategy is to give them minimum information, and stay under the radar.
Having said that, governments hate cash because they don't know who has it, or what it is being spent on.
I use cashless in Australia, and cash here. It's a matter of convenience.
I think of it as having two strings to my bow. People who go cashless entirely are up the proverbial creek without a paddle if their bowstring breaks.