This makes no sense at all because money is not all about banknotes and physical form. Reasons are much deeper than that. Nevertheless, the attitude of banks and governments towards cryptocurrencies will change and it is changing already. So the concept of money is changing also digitalization is rapidly developing so the state of mind should also.

This is a very questionable argument, I think. But bitcoin, unlike Fiat money, cannot be faked, and if you pay with bitcoin, then the second party will know for sure that it is not a fake.

Money is whatever people decides holds value.  Doesn't matter what it is, seashells, gold, beanie babies, paper.  Currency is just a faith based system.  Fiat is a complete scam but most people are too stupid to realize or lack any real fight to go against the banks.

‘Bitcoin Is Not Money’ Because We Cannot Print It – Banks

“Bitcoin is not money”, the European Central Bank published a statement regarding bitcoin as not being a monetary asset. These words from the bank are immensely harsh for the crypto community. The crypto analyst and investor, Joseph Young suggests that the bank has released the statement as per the crypto assets being unprintable. Though this is an absurd manner to qualify a monetary asset as ‘money’, the bank does praise the technology in the working behind bitcoin. The technology, being the entire crypto protocols, most specifically, decentralization is breakthrough and can make up for some decent projects in the future.