While the purpose of cryptocurrencies is to be a unit of value or payment method (replacing, for example, the euro or the dollar)
Cryptocurrencies are not created to replace fiat, they are just alternatives. But, manybe in the process, fiat may be replace as countries are working towards CBDC, but this will take a very long time like decades to century, if it eventually happens that cryptocurrencies totally replaced fiat.
tokens can basically represent any asset that is fungible and negotiable
There are now also
Non Fungible Tokens (NFT)