~snip~
Although Bitcoin is decentralized and can effectively alleviate inflation, it will not become a world currency. Some countries now recognize its legalization, but Bitcoin is a volatile and unstable asset, and it is difficult to be accepted as a currency by all countries. Many governments are reluctant to accept Bitcoin because they cannot control it.
I can definitely see Bitcoin as the base of most international payments.
It doesn't really matter too much if the price of Bitcoin is volatile if you're converting Fiat1 to Bitcoin then sending it through the Bitcoin network and then converting Bitcoin to Fiat2, as it would be pretty much at the same price given the minutes of difference.
After that is done, then I can see that people will just want to skip the unnecessary fiat step.