In my opinion, the government does not allow the central bank to disappear, because the central bank is the backbone of the government, and they can not let their spine be taken away.
Yes it is true, in my opinion crypto is a digital asset whose existence is on the internet, while bank loans are owned by the government in the real world, so crypto and banks will always be there side by side. But the government in the world will be good to legalize Bitcoin, because bitcoin will not interfere with your FIAT currency.
I think crypto and bank need each other because the money generated from the internet can be taken through credit cards or bank. yes, I agree as you say the bank is a place of loan owned by the government in the real world and crypto it is assets that exist only in the internet world, so they always side by side.