I think that there is still a need for Fiat money, because not all countries and people are adapted to cashless payments.
Ask a thousand of random people what they know about the cryptocurrencies. I bet, maybe 20 of them or even less will give you the right answer. Most of us still believe in fiat more than in the crypto.
yes it is very clear, if you are asked to choose, of course people will choose fiat money because fiat money is real, legal and made by the country. try it if crypto is legalized, of course that person will think twice about choosing fiat or crypto money.