Increased Competition for Digital Payments: CBDCs, as government-backed digital currencies, offer a trusted and regulated alternative to cryptocurrencies like BTC. They could capture significant market share in digital payments due to widespread acceptance and integration with existing financial systems, potentially reducing BTC’s use as a transactional currency. However, BTC’s decentralized and censorship-resistant nature may still appeal to users prioritizing privacy and autonomy, mitigating some competitive pressure.