I don't think that applies to cash. Cash is artificially scarce. It's only kept scarce by the fact that it's illegal for anyone but the government to print it, and because printers refuse to print something if they detect a certain pattern that's present on bills. Otherwise, cash would only be worth the paper it's printed on.
It's naturally scarce. Even if it was easy to print dollar bills, they would not be infinite. You actually need physical material to make them. That puts hard limits to the scale of any counterfeiting operation. They could make it legal and it wouldn't have a fraction of the impact of fractional reserve banking which literally creates mountains of money out nowhere via the power of debt.
