It's been moving this way for years, witness the way insurance and MoT details are checked at the click of a button when you renew your VED online. Once it is all online there is no point having the little paper disc, no one looks at it anyway.
A story:-
One of my Chamonix friends took his battered Punto on a day trip to Geneva. This Punto, Irish registered, hasn't seen an NCT (MoT) station nor tax disc for ten years (but it is insured). By Irish motor regs it should have been displaying all three (tax, NCT, and Insurance) discs in the windscreen. The Swiss border police took an interest in this old wreck with nothing showing in the window.
They stopped him and asked for "documents".
He gave them his passport.
"Documents, car" they repeated.
He shrugged and said "computer, all computerised".
"Documents"
"All on the computer. In Ireland, all computerised".
They got bored and waved him on.
I suspect there will be more of this