The blockchain offers many possible uses. What you describe is one. As for bitcoin, it's meant to replace fiat. It's not controlled or manipulated by any authority. What you describe sounds more like Ripple.

The blockchain is one part of the Bitcoin (with a capital B) protocol. The digital currency part (bitcoin with a small b) is what makes the blockchain run. The two are inseparable. That's my understanding.

EDIT: Ripple is an extremely revolutionary project in its own right. If anything, it's too far ahead of its time. Or maybe not.