It's entirely decentralized, but it's not a new currency, just a way to transfer it. You do have to have your money in a bank, but it can be roughly any bank (we support 70% of US banking customers now, working toward 90 by the years end).

I'm sorry if my first comment came off like a criticism of Bitcoin, I love Bitcoin - I just never considered that being the online version of cash was part of its appeal. To me, it was being an alternative to government currency that was always what made it special.