I would say not only decentralized but also anonymous if used well. Paper money can be replaced by digital means of payment, as it is happening, cards, payment by mobile or smartwatch.... The point is that digital payments mean a loss of privacy. Your bank, and the central bank of the day will know everything you spend your money on. With Bitcoin used in an astute way and maybe with other cryptos, we will be able to maintain privacy.
Potentially. But let's not kid ourselves, chances are that the typical person wouldn't be using coinjoins and mixers and such(or probably not even coin control). I'm looking forward to having a genius creating a way for the typical non-technical newbie to easily have privacy to a certain extent(and hopefully without spending much).