Crypto will never replace banking system ,government and banking hold the most powers in the world and because of taxes that companies and individuals paid which are used for social amenities like electrification, health care centers, housing e.t.c. Hence it would be artless to think government will open their eyes and allow crypto to replace banking system.
I know that cryptocurrency can not replace bank, but we misunderstood these because bank is place were money is being transact successfully and is generally known as fiat currency and cryptocurrency is a digital currency that can be seen online and document also online, saying banking system that cryptocurrency will take over it is wrong speech, because what should be there is cryptocurrency /Bitcoin can take over fiat currency.
Considering on whats the actual purpose on why crypto exist yet it would give out people to chance to be their own bank and if we do tend to compare out on what are the benefits and specific functions on where
banks do then you would able to realize for yourself that this wont really be possible to happen.Hence, as if the government would really just easily allow it? Of course not.
As long they do exist then it wont be happening anytime soon even if we do talk about 10-20 years from now which is impossible.