Question is how to you make a physical token that represents a digital currency.

You print, or write by hand, or emboss on piece of metal or plastic the private key of address containing necessary sum. That's all. Payee add that key to wallet and check that it is valid and have declared sum, than he immidiately could use it or transfer to his main address or just another address with private key known only to him to avoid any payer cheating since while payer know private key too he could use that address to transfer money.

If you would have been RTFM instead of listening shitty economy "experts" and other swindlers, you already would have known that.