The high degree of centralization and traceability of digital currency will strengthen the ability of the state or regulatory agencies to grasp the data and information of the people, both subjectively and objectively. Human greed and government mismanagement have destroyed monetary policy without exception. CBDC is the same as all other types of fiat currencies, because people will get into trouble because of inflation and heavy currency control.
Bitcoin frees people from monetary policy. The central bank cannot put the cryptocurrency sprites back in the bottle, The power of the market in a more open currency selection system will mean that cryptocurrencies are expected to play an important role in forcing these politicized central institutions to better manage their people’s funds. CBDC may also be an opportunity for Bitcoin to help increase scalability and liquidity, it will make Bitcoin more priceless.
Possibly! Because with the implementation of Central bank controlled digital currencies, the finances of every citizen will become an open book to the government. Every single transaction can and will be monitored. So the usage of privacy cryptocurrencies will increase. Not necessarily bitcoin but it could be any currency where people can effectively escape the government surveillance. I presume that cryptos like Monero will become more popular than what it is today. But that will bestow a positive impact on the crypto market which could trigger a bull run due to increased adoption. But we have a long way to go before that!