Some may fear that a government-issued cryptocurrency would eventually supplant Bitcoin. This is absurd. It merely substitutes a blockchain for the wire transfer of a fiat currency. It precludes a really free exchange of value between any two random locations on the planet without the intervention of a third party. A government-issued cryptocurrency will inherit all of the fiat currency's flaws. It will squander energy as a result of perpetual inflation and regulation.
What are your thoughts regarding this matter?
You are right about this. Indeed, I see CBDCs as currencies that threaten the dominance of fiat and might potentially replace it fully or partially in particular countries that introduce them. I also believe that some governments might hope that their CBDC would replace the demand for cryptocurrencies, and they might enforce legislation that restricts cryptos (decentralized ones like Bitcoin) to ensure that their currency is the most popular. But I don't think they'll win in the long run because CBDC is simply too different from Bitcoin and does not offer the same range of features and opportunities.