Xbox officially announced the disc to digital program

[BraLoD]

Wman1996 said:

So here's what I am wondering if it hasn't been addressed or I haven't seen it.
If you use the disc to digital program and later on for whatever reason (it's usually people who hack or harass which almost none of us fall into) you are permabanned from Xbox network (but you console is not bricked) can you still use your physical game offline? And can you still use it if there's no internet access and you're not banned?

The disc is said to still function normally, so nothing changes on how the discs currently operate