In my country presently, we know how important cash has become, the government decide to renew our Fiat currency and it's not in circulation yet, for some reasons, some people believe that it was intentional because they don't want some bad actors to use Fiat to rig the ongoing election in the country.
But since all this mess have started, many people are suffering, and I as a person have no hold the new fiat Note because I can't get a hold of one yet, and just because many stores prefer Cash than digital transfer, this have make me see how important Fiat currency can be.
Some people will say that Fiat is trash and they keep all their money in stable coins, the truth of this is you are doing things wrong, the stable coins in crypto space are backed by nothing, they can vanish into thin air if the government doesn't want stable coins to exists.
I believe that all stable coins are easier to trample on by the government, more than other crypto projects in this space, Fiat has it's usefulness, let's stop deceiving ourselves, the first time I ever purchased Bitcoin I use Fiat and I believe this is the same as everybody on here, unless you mine your own Bitcoin or get paid in Bitcoin working online.
Do not trash Fiat yourself when it's actually needy, crypto and Fiat must co-exists until the government decide to go digital with Fiat themselves, and Fiat is not trash.
However, if governments create their own digital currency, the crypto environment may shift. For one thing, it might lower demand for stablecoins by allowing consumers to use government-backed digital money instead. It may also make it more difficult for cryptocurrencies to compete with government-backed digital currencies, which have more authority and stability. On the other side, it may raise awareness of digital currencies and make people more comfortable with the concept of utilizing them, which might be beneficial to crypto overall. And because it is digital, it has the potential to be utilized for configurable money and smart contract agreements.