People will no doubt surely be more appealed towards digital payments due to them preferring to not transact with physical cash. But regardless, I personally don't think physical cash transactions will necessarily die as there's definitely still advantages with using physical cash(privacy is one).

With that said, no; it doesn't necessarily mean people are going to move to bitcoin. People will mostly be using platforms such as Cash App and Venmo.

One of the key SOP for COVID19 is contact less transaction and deliveries. Most vendors are now upselling this service and most consumers are going for it.  In my opinion digital currency will now become an everyday necessity.

But the problem with digital currency is that it can be easily tracked hence, you can forget your privacy.

Definitely true, people using digital currency will give them the benefit and ease of transacting payments without physical cash. While this one is great, physical cash will not go obsolete. However, CBDC on most countries like chinese digital yuan, japanese yen, and other experimented digital currency initiated by central banks may spell "yes to utmost adoption" of digital payments.

With current pandemic, it is worth to use digital currency to avoid the spread of diseases.

The COVID-19 crisis is spreading,not evolving.There's a difference between those two terms.
Consumer behavior can't be changed just like that.If you asking about whether or not the people will pay with Bitcoins when buying bread and tomatoes,then I would say no,this will most likely never happen.
Cryptocurrencies are still recognized mostly as an investment asset,rather than actual currencies used for daily purchases.The current pandemic isn't shifting this mindset.
I wouldn't say "elevation from physical to digital",because the digital world still has many flaws and we should not put it on a pedestal.The "digital" isn't always superior,compared with the "physical".

I wouldn't say it will be permanent but there are factors to consider regarding consumer behaviours. So far, I think the lean towards using digital payments in my country has increased since people now are into selling goods online. I don't think bitcoin is into those digital payments accepted here but more like those are still just cash from some digital payment providers and I think we are far more to accept that norm paying digital currencies like bitcoin.

I'd argue that, once you get the hang of digital payments, you'd be more interested imo to check out BTC as well. A lot of people don't like BTC because it's virtual, so using virtual fiat vs using a virtual decentralized currency is only a small step away. I hear "please use card payments as often as possible" every like 10 seconds in our grocery stores and I think the constant repetiton of those words will make a difference at one point, lol.

Probably but it will be for the better, I really think that this crisis took everyone by surprise and this hit the economies of the world, so while people are waiting for things to go back to the way they were I think the next decade is going to be challenge for governments as they try to keep their economies together only to fail at the end.

And while this may seem bad for cryptocurrencies you must remember that bitcoin was created with that scenario in mind, an scenario where the fiat currencies of the world fail and lose the trust of the public is all but a given now with the only caveat that we do not have an exact date for that crisis, but at some point people will realize that gold and bitcoin are good options to save yourself from it with bitcoin being the superior choice as unlike gold you can trade it online without the need to identify yourself.

Even before the pandemic, doing cashless transactions is highly encouraged.

So to rephrase your statement, towards "digital payments" and not "digital currency".

With or without pandemic, expect that the volume of digital payment will increase time by time. But unfortunately, it doesn't mean BTC will always be considered to be used, at least from what I observed here in our community. We have to accept that bitcoin is still far from being accepted nor consider being used worldwide especially at a time like this due to the fact that there are not many merchants accepting crypto-payments directly or simply people are having more convenience with fiat payments online on which transaction are just 1-tap.

Even before Covid, central banks were moving towards CBDCs.
The digital yuan is already being tested.
Also other central banks ( EZB, BoE, etc.) have stated that efforts are already being made to move towards a CBDC.

I still hope that we don't become a 'cashless society', where in my opinion the disadvantages clearly outweigh the benefits.