Digital dollars are designed to be controlled by the government but thats not the case with bitcoins.
Bitcoin has its own supremacy. I dont think the digital dollar will do any harm to them.
The U.S. dollar is completely centralized. Centralization may have some impact on Bitcoin in the short term, but it cannot be affected in the long run. The more you block BTC, the more people will pay attention to BTC.
How would centralisation of a fiat currency will even affect Bitcoin? Im confused. In short term? on what sense? Cryptocurrencies and fiat such as USD has no effect with one another. They are just interchangeable if an investor would like to liquidate an amount of his asset. Even the market prices of cryptos are still based with fiat but a sudden fall on the value of one, won't result to a change with other one's market price.
I also agree with you, there is no relationship between the two, it's just that they have prices on their respective exchanges, sometimes it's confusing, but it's back to the holders how they liquidate a number of their assets, in several markets, because it's true that all prices depend on fiat, not even just this year, even in previous years, experiencing the same thing, only a sudden drop in the value of one currency, all changes depending on them..