The launch of Central Bank Digital Currencies (CBDCs) could impact cryptocurrency demand in varied ways. CBDCs, offering government-backed stability and trust, may attract users seeking secure digital payments, potentially reducing demand for volatile cryptocurrencies like Bitcoin. They could also enhance blockchain adoption, indirectly boosting interest in crypto ecosystems. However, CBDCs’ centralized control and surveillance risks might drive privacy-focused users toward decentralized cryptocurrencies. Competition may intensify if CBDCs integrate advanced features, but cryptocurrencies’ unique value—decentralization, censorship resistance, and investment potential—could sustain demand. Market dynamics, regulatory clarity, and public perception will shape the outcome. While CBDCs may challenge certain use cases, cryptocurrencies are likely to coexist, serving distinct niches.