In the current situation I think paper money will not disappear. There are many things to consider and in reality it's not easy to be used this online currency. Because others can't adopt easily this online currency and paper money is still the original use even in the future.
I agree with you. Paper money or cash is unlikely to go away soon. It is still widely used in many countries and is the primary form of paying things. But with the battle between cash and electronic payment methods, the former is quite to be in a losing situation.
There are still countries where electronic payment is not growing faster than cash but the movement away from cash is happening in various ways and paces around the world. Based on what I've read, some critics stated that there are benefits from moving away from cash since paper money enables crime and tax evasion. And recently, it has been estimated that electronic payments will increase by 10.9% a year by 2015-2020.
Cash is becoming less popular due to the growing array of alternatives. With the ongoing arguments, it is still difficult to determine precisely whether cash will not be used anymore. I guess its better to say that in the future, there will be "less cash" rather than "cashless" because the human connection with cash will be hard to break.