Think about it like music. It is still created by humans, but is turned into digital form for humans ease of use. Same with money. It will always be created by humans, but we are just seeing our money go digital in a safe way for the first time in history.
Our fiat already is digital and in forms much safer than bitcoin. Even the professionals screw up their bitcoin wallets. Fiat in wallets, bank accounts, credit card balances, etc., are already much safer. Our money rarely manifests as tangible physical coins and bills. http://www.coindesk.com/federal-reserve-bank-vp-protocol-just-like-bitcoin/
Virtual flat suffers the same vulnerabilities as bitcoin, a specially crafted browser plugin can siphon funds from your online bank account once you login, bypassing 2fa auth.