Of course. Fiat becomes a physical payment instrument. although crypto currencies are growing rapidly, but don't forget that crypto currencies have value because there is fiat money. Fiat indirectly becomes a crypto value gauge.
I totally agree with your point of view. I still don't get it why people often see fiat currency as the bad guy forgetting that without it we can't actually value whatever crypto assets we're holding. Well, maybe because of the government backing which is anticrypto.