The blockchain network eliminates middlemen and, as a result, elements of the government system. There is no need for a central bank anymore and everything is done under the blockchain chain and by the users themselves. Peer-to-peer transfers between two parties on the Bitcoin network mean that there is no need for middlemen to manage and distribute the currency. In theory, simplifying transactions between people and between different actors on the Bitcoin blockchain could overhaul the current system. The financial infrastructure of digital currency is decentralized, and the power to increase or decrease the supply of currency is not vested in one or a group of authorities. Therefore, in the new structure, the role of governments in managing and regulating economic policies through intermediaries is eliminated.
But sadly many people are going through centralized exchanges to engage in Bitcoin transactions. This might be caused by strict government regulations and a lack of knowledge of how the decentralized bitcoin system operates. The government is doing everything possible such as creating a replica of the cryptocurrencies known as CBDC to ensure that they stop the adoption of Bitcoin. A larger part of global population still lacks knowledge about the importance of privacy and decentralization so I didn't think bitcoin will totally overhaul the current financial system anytime soon. The process will be gradual but inevitable in the future.