I think this will create even more confusion, because on the one side Bitcoin people are telling people that Bitcoin is digital money and that the coin in Bitcoin is not a physical coin and now people create physical Bitcoin Banknotes. 

If I was a newbie and I was presented with this Bitcoin banknote, then I would be totally confused. I also doubt if the Singapore government will tolerate people that are printing currency, even if they are just printing the "carrier" of that currency in the form of a Banknote.