they will use their own blockchain, for sure. And this is not good for crypto industry in general
In my opinion, the launch of a CBDC would not adversely affect the crypto industry, if anything it could be a positive as the public could see it as an endorsement of the blockchain if governments are utilizing it.
They'll also be targeting different markets; Bitcoin is mostly used an an investment, store of value and less as a currency (this could change in the future). A CBDC would ideally be a stable coin to serve as a digital form of fiat. Users of Bitcoin would hardly jump out simply cause there is a digital version of the cash in their pockets.