Nevertheless, 100nF Ceramick capacitors are required directly at the connections VCC and GND as close as possible to the Atmega328, C12 will almost certainly be too far away from the Atmega. In addition, C12 is responsible for the voltage regulator, which cannot also do its job for the Atmega.
You don't need to be afraid of ceramic capacitors, they are neither evil nor do they try to usurp world domination. Note: it is better to build in one more than one too little.