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'm not sure it's that simple. Firstly, most people seem to be okay with fiat, even though there's inflation with it, and it almost always (Japan has a famous exception) loses value over time. The only trouble they see is when fiat surfers from hyperinflation, but that doesn't tend to happen to most fiat currencies. Secondly, Bitcoin might be in trouble in some countries that introduce CBDC because it's introduced precisely as a more controllable alternative to decentralized cryptos.