Fiat money like coins or paper money is a symbolism that represents the status or a person and their country in my opinion. Also it dies have the same way of getting its value just like gold, silver, diamonds and even cryptocurrency and that is by us the people or market putting value in it.
Yes, a paper money that every country has its own is the traditional monetary system and it has a market value among the all fiat currency on the entire world, and on this digital world the people sees that electronics money is a convinient way of making payments so it was accepted by many and crypto currency will digitalized all the fiat and traditional way that we have now for the new generations.