Bitcoin is not created to compete with any centralized banks so I don’t see any reason why bitcoin needs to eliminate local banks. Banks have been serving the people in their best possible ways so I don’t think it need to be stopped just for bitcoin to steal the spotlight.

Bitcoin is bitcoin, and banks are banks, they serve different purposes to the people around. While bitcoin is used as a decentralized currency, banks on the other hand are used in alignment with its fiat currency rules and policies.