i guess this will not be in the near future..removing real money will be very difficult..imagine buying a single candy through online transactions or atm cards..service charge will be bigger than you are buying..
Not only in the near future but I think by whole paper money can't be replaced by bitcoin. As you say purchasing very small things like candy can't be done with bitcoin because it's price is very high and it would be easy for it to use bitcoin in high investments.
Small investments and shopping can also be done very easily with bitcoin but not that small as that of candy. This means that paper money has its own importance and can't be fully replaced by digital money.