Central banks will create their own digital currencies, but they are unlikely to become popular enough.
Don't underestimate the power of the state. CBDCs will have state support and that will act to their advantage. But then, CBDCs are likely to replace fiat payment gateways and may offer competition to PayPal, MasterCard.etc. Their impact on proper cryptocurrencies such as Bitcoin and Ethereum is going to be pretty limited. Cryptocurrency users are not going to turn to CBDCs overnight. At the most, those who are using stablecoins right now may use CBDCs instead to protect their assets from short-term volatility.