No doubt bitcoin was developed with the thought to replace the paper currency and also to have a significant change in the financial system of the countries.
I believe Bitcoin is created to remove banks and third parties from the transaction system. It is intended to be a digital currency that can be send P2P and I believe I have never read anything on the whitepaper that it is intended to replace paper money. If there is, probably I missed the clause and kindly redirect me to it, thanks.
However, since the adoption of bitcoin means that government will have less or no control over the money, this means that government will never let bitcoin grow and will never let it use as a payment gateway. There is an indirect war between public and government where government wants to continue the current banking fiat system and public wants to switch to digital money.
The government will always be the biggest promoter of adoption and at the same time the greatest hindrance to Bitcoin. I believe that one-day government will recognize Bitcoin but will never do the "stupid" thing of replacing their national currency with Bitcoin. Although the technology behind it may be the future of money, I believe Bitcoin will always be an alternative.