I am not saying it could be a transition to cryptocurrency, but to consider, applying blockchain to our financial system is turning our currency to cryptocurrencies which in fact very different to our currency financial system. How? by making it a cryptocurrency, it will be more secured and safe. Though, it will not imply that users will be anonymous when using it, but they might see hashes, but with the proper utilization of technology, we could still make it the way how fiats work, but at that time, it is now even more secured and safer from hacking.
In the next ten years, I predict blockchain would be deeply embedded into traditional financial system. It will be used by countries, banks and even organizations for full auditable and transparent transaction records. Many entities are currently testing out blockchain for their businesses etc I am sure banks are doing the same. It won't be long until a switch is made to have a blockchain based financial system. Blockchain will save a lot of costs to audit transaction histories.
The traditional financial systems are already embracing digital forms of payment worldwide(Only a few accept crypto though) at present and they will continue to do so in the future providing their customers with a multitude of physical and digital payment methods.
Most of the Traditional financial systems already entering into the digital mode of payment that accepted worldwide. This new traditional financial system can make a huge loss to banking sectors for not having exchange foreign funds if accepted worldwide.
Currently some of the countries making use of Blockchain including banks accepting like Ripple currency.
Since we are now at the phase where technology are almost everywhere, traditional financial system will have no other choice but to also adopt these changes and go digitally. It's being part of innovation because of they won't do the same or keep up with the changes, they'll be left behind. In the next few years, if they'll adopt blockchain technology, it will bring efficiency and convenience not only for them but also for everyone.
It will have a very huge impact, as of today we are seeing changes in how people slowly shifting from the traditional way of transacting to cryptocurrency transactions. Remittances, payment, securing funds easily is one of the changes that were introduced by crypto through the blockchain technology.
For the next 10 years, the possibility of using Blockchain technology on every transactions might overtake the old transaction system. Implementing of Blockchain technology will make an improvement of the security of the big datas recorded, the transparency of the datas might improved.