In an interesting development, Tangem has today launched what they call Smart Bank Notes in Singapore.
The Notes can be loaded using a Smartphone application and are available in denominations of 0.01and 0.05 BTC (approximately $100 and $500 today). They contain NFC chips and are designed to be handed over to any retailer just like a traditional bank note. They are in effect a secure offline paper wallet.
This could be an interesting milestone in the development of Bitcoin as a replacement for traditional currencies.
More information is available in this news release:
https://www.prnewswire.com/news-releases/tangem-launches-bitcoin-banknotes-in-singapore-300641983.html
I'm not sure I would like to have crypto as fiat, because that's what it would look like. How would you get change if you handed this over the counter?
It may be more like have cryto as gold, rather than fiat. People wouldn't have to accept it by law like they do with fiat, but they would probably want to accept it knowing it will only appreciate in value. Like gold you would probably get change in fiat.
I do agree though, there are quite a few practicalities to be worked through before this could work. In reality, fiat has no place in the developed world now. All payments should just be with your phone or NFC card.