Fiat and crypto are already merging. Banks/governments need to hurry up with issuing a credible 'hard currency' crypto coin if they want to compete with TenX and Bankera types of solutions. But legacy infrastructure, human capital, inertia and an ocean of debt almost makes it impossible to go from regular fiat into fiat-cryptocurrencies seamlessly. That still leaves out the current crippling regulation.
I suspect banks that do not have a full crypto option and bank account'-less option with card/ NFC phone payments soon will wither away or be eaten. Online banks have the future.