The pilot programs of Central Bank Digital Currencies (CBDCs) have significantly impacted the crypto market, both directly and indirectly. Directly, CBDC trials increase competition, as state-backed digital currencies challenge the dominance of decentralized cryptocurrencies like Bitcoin, often leading to short-term price volatility. Indirectly, they legitimize blockchain technology, boosting investor confidence in crypto infrastructure while prompting regulatory scrutiny. For instance, China’s e-CNY pilot has accelerated global CBDC adoption, pressuring crypto markets to adapt to stricter compliance. Meanwhile, CBDCs may reduce demand for stablecoins, as seen with the EU’s digital euro exploration, shifting market dynamics. However, they also inspire innovation, with crypto projects enhancing privacy and scalability to compete. Overall, CBDC pilots create a dual effect: fostering mainstream acceptance of digital assets while intensifying regulatory and competitive challenges for the crypto ecosystem.