Debt, particularly in order to buy something that you need to have now, but can't afford without saving for years and years, is a necessary thing to have available to folks.

Also, I am generally against the government "banning" things, and all for letting the free market decide. The problem we have is that we don't have a free market, since the money is corrupted through inflation. Yes, bank loans are a large part of money creation, but only because they have the government propping them up. A hard, digital money, will make that scheme a lot harder to pull off, causing banks that fractionally reserve to implode.

Additionally, when the money holds its value compared to all other goods, because none of them are truly scarce, all other assets will lose their monetary premium, naturally making housing more affordable.