No, it's like pulling cash from banks and sticking it under the mattress. Sure the wider cryptocurrency market is a financial wild west, but bitcoin is relatively stable (I don't mean non-volatile) at this point. It's a reasonable alternative.
You are exchanging cash for crypto which means the exchanges now have to deal with the cash deposits somehow and where can they put it? Well they’ll put it either in banks which solves nothing or invest it as they see fit which likely to be even more problematic.
Crypto adds nothing to this it isn’t any different in principal to any other securities banks use for storing wealth.