Well it is possible that crypto banks could replace traditional banks in the future, but for now, there is uncertainty. The use and acceptance of cryptocurrencies is still relatively new and the government have not yet made clear any regulatory policies concerning crypto adoption, perhaps one of the reasons why the adoption process is slow.
I doubt maybe there will even be any crypto banks, possibly we could see traditional banks incorporating cryptocurrency transactions in their system, that is what might have even incited the CDBC idea. This now could lead us to the question wouldnt this actually defies the sole purpose of cryptocurrency or rather bitcoin which is decentralization. The centralized exchanges today look more or less like our assumed crypto banks and I doubt investors will fall for it and store their funds there.
[ Crypto may be globally adopted in the future, but that wont mean that it will replace fiat and traditional banks. Crypto will only serve as an option to fiat, fiat will always be the main currency. So its hard to expect that crypto banks will replace traditional banks because majority will still use traditional banks over crypto banks.
This is one area even the government is not well informed about, they feel bitcoin or crypto is here to replace the entire Fiat system, why wouldnt they when they have their way with irregularities in traditional banks. Crypto is or should be use as an alternative to fiat
