Not at the current state. People are still dependent on banks to have access to paper money, because there are few places where you can get this through Bitcoin ATMs. In addition, there are few places where you can spend Bitcoin directly.
The number of Bitcoin ATMs may get significantly increased in coming days which may make bitcoin user less depended over usual bank's ATM to convert bitcoin into cash. However replacing whole banks and bank's ATMs will be almost impossible for bitcoin even after 100 years but it will surely gonna make government to atleast think about using blockchain tech for transparency and security in our traditional banking system.