Could physical asset-backed currency ever compete with digital assets?

Crypto solved a lot of problems around portability, decentralization and transferring value digitally, but I've been thinking in the last few days, "is digital the only future for fiat systems?

Recently I found a couple of physical notes that have a gold finish of small amounts in them. It is really an asset-backed currency that could be utilized in exchange.

Because it made me think that that Decentralize digitally with crypto,Physical asset-backed currency provides an asset with an actual ownership.

Could physical asset-based currencies have any real use again, or does crypto have totally taken the place of this concept?