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.
I do think this is not only important right now but also a necessity. Are the end of the day there are going to be technological advancements and those advancements might need a slight push and I do believe that cryptocurrencies are the ones doing that right now. Are the end of the day the only way it would work is if the government decides to integrate themselves with it.
-Also at the time of an economic crisis or collapse people can very easily use these to get out of bad situations.
The central bank might try and fight back as much as they want but I do think now they all understand that they do need crypto friendly economy.