"Without depositors Banks will be having no funds to lend to the needy entrepreneurs. "
It doesn't work like that, it works the other way round. That is, loans create deposits - not deposits create loans. Otherwise, where do you think the money comes from in the first place to create those deposits (a bit like the chicken and the egg)? At least that's how it works in the UK[1], and pretty much all other major countries, including the EU, AIUI.
Anyway, it's not a war, fiat vs bitcoin. I think we'll end up with both fiat and crypto. Which is a good thing, IMO, as each will help keep the other honest. It gives us choice.
[1]
http://www.monetary.org/wp-content/uploads/2016/03/money-creation-in-the-modern-economy.pdf"In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is often misunderstood: the principal way is through commercial banks making loans. Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money"
