The development of numerous CBDCs could lead to the fragmentation of the cryptocurrency market. Instead of a unified global market, we might see the emergence of regional or national digital currency ecosystems centered around specific CBDCs. This fragmentation could reduce the liquidity of cryptocurrencies like Bitcoin, as they compete with a multitude of state-backed digital currencies. Reduced liquidity could impact Bitcoin’s price discovery mechanism and make it more difficult to buy and sell large amounts of Bitcoin without causing significant price swings. This fragmentation could diminish Bitcoin’s role as a global, borderless currency.