I think removing the fiat and using crypto currencies are not a news, but more on speculation by some geek or socialist or economist that is looking forward to the future of bitcoin. Removing the fiat is really ridiculous, as you can see bitcoins are still converted to real money because bitcoin is not really known by many stores and they dont like its volatility. They are scared that bitcoin may end up making them really broke because of the unpredictable price. These is really far from happening because the government know what is these digital currency and what harm can it bring to its people.
Fiat getting removed is no more than an idea formed by us, the bitcoiners. We know that there's a different option other than fiat for monetary system and it's much better than fiat so we're thinking that it might replace fiat eventually. Removing fiat right now is ridiculous because not much is using bitcoin but that might not be case in the future. We can blow up in population and people are going to start depending on bitcoin more and fiat less. We're in a digital world and bitcoin has a much cheaper transaction fee than fiat-related websites (e.g. Paypal).
I think actual bitcoin users aren't scared of the price volatility anymore. They have been here long enough to know that the price won't just go from 1kUSD to 1USD real quick. It will require enough time for us to get rid of our bitcoins.