We all using paper money now but a time will come when we could not have to pay for goods and services using paper money, everything will be digital throughout and the bank it's do not have the power to ignore cryptocurrency payment system which is going to be a norm with time.
We have already seen big institutions, banks and government investing and also utilizing cryptocurrency as a payment system. The government is already spending too much money for printing of paper money just for them to be in circulation and the idea of crypto payment system will ease unnecessary expenses in due time. This is fiance revolution that is already in place and will soon dominate every region in due time.
It should be noted, the idea of a world without paper money has been around for decades, credit cards and online banking existed before crypto came along. And the idea of not using paper money became even stronger with the advent of smartphones. So the digital world would still happen even without crypto but the advent of bitcoin/crypto has accelerated this process.
Crypto have been in the spotlight for the past decade but have primarily been used as a speculative, get-rich-quick asset. It is only truly considered potential and can become a future financial solution when it is recognized by the government. So instead of saying that banks need to adopt crypto to survive, it can be said that its future has become brighter thanks to government and banking recognition. Because if they don't admit it, it's just a speculative market for gamblers.
Banking and crypto will be the perfect combination towards a fully digital world, they cooperate and complement each other, no one depends on anyone.