In my opinion, from a technology perspective and ease of use, blockchain is the right place to replace the traditional banking system.
We see over the last decade, the payment system has transformed so rapidly. From real-time cross-border payments, to using blockchain and cryptocurrencies.
Recently, Central Bank Digital Currencies (CBDC) and stable coins also emerged that made traditional banks rethink their business models.
Blockchain technology has been very useful and beneficial to each of us but i think replacing our traditional banking system with this won't happen easily and will definitely take a long process.
Blockchain still needs a more room to grow because its still young and not mature yet. People has entrusted their whole finances into traditional banking system in their whole life so if this will be replace with the current blockchain, then let's expect that there will be more issues that will come out.
when one day blockchain has matured in its development, and if the government views the old banking system as no longer relevant, it is very likely that blockchain will replace it. but for now it may not be possible, because to replace it directly I think it's difficult where banking must always run every day