[etatoby]

Anonymous yes, decentralized no. The bill in your hand is printed by a central authority, is given value (or taken away, at their whim) by that same central authority, is protected by law, and is technically not even your property. It's the opposite of decentralized.

[xyzzy4]

It's decentralized because you don't have to communicate with a centralized authority in order to make a transaction.

[phatfish]

Well the use is decentralized any two people can (anonymously) complete a transaction. But the creation is centralized.

[GunboatDiplomat]

That's the only way to have a physical fiat currency. And the alternatives all have much more serious problems.