I don't think this will be that much of an issue since the so-called "Digital Dollar" is still gonna be governed by the Federal Government which makes it not decentralized, unlike Bitcoin.
Yeah, and it is not limited to decentralization but it cannot be an asset as well. Why we are preferring bitcoin compared to gold or paypal; those same reasons will applicable against all government issuing digitalized money. As of now, 90% of people have been adapting bitcoin for the reason of its investment characteristics which is obviously missing with those digital money. So, nothing could stop bitcoin as of now.