If there was an alternative currency (paper money) unregulated by the Government would you use it?
I doubt if there is any way that would have happened when it comes to the paper money. The question you need to ask yourself first is that who is printing it and how is it distributed? It does not sound like anything plausible to ears which is why I see no reason why we should even be trying to think if it is going to be used or not.
Moreover, in this kind of scenario when there is no regulation at all, just like we are having in the crypto space today, apparently, everyone will want to be coming up with their own notes for some reason, and how do you think that would have actually turned out considering it is a paper currency.