Put shortly, digital currencies issued by central authorities cannot on their own pose a real threat to Bitcoin and undermine its value proposition coming from its decentralized nature and capped supply, especially in the long term.
True, and don't forget the pseudonymity and the borderless nature of Bitcoin. With CBDC, perhaps KYC will be mandatory, so people's financial activity can be heavily tracked... Good bye online gambling! And it's easier to convert BTC into local currencies at the moment (well, based on my experience dealing with both). I think CBDC & fintech products are competing in the same market, but not with Bitcoin.
Anyways, it is definitely not a blessing since Bitcoin will move towards a niche market if it cannot compete as mainstream everyday e-cash. Like I said:
Perhaps it cannot become a currency, but it certainly can become useful money.