Bitcoin is playing an important role right now with incredible prices these days. Although it is now used mostly as a way to make money, this is not the main thing bitcoin was meant for. In the future it should be used for faster and transparent financial transactions. However, I don't think it will replace paper currency.
Your right, not exactly as it replace paper money but it could be equal in terms of uses. Having this, we let the people to have a choice what is best for them and it could be easier for their life. As we go forward and facing new challenge, the more bitcoin having playing much more compared to paper money.