It's a futile attempt to end crypto but at the same time, it's kind of like transitioning over towards digital currencies and removing paper money from the system completely kind of thing I guess? Tbf to its name it isn't really anything decentralized, heck from what I understood it's literally just that, a digital form of fiat. I think the issue just blew up since people kept thinking it was a way to go against crypto when in the first place, their methods of payments, CBDC ain't going anywhere since it's backed by the government (like fiat) nor crypto (BTC) would since it's decentralized, try as they might they can't exactly hit anything/anyone to stop it.
I do not place myself in any of these proposed three categories. Of course, government CBDCs cannot be classified as cryptocurrencies. This is an improved version of government cashless payments. States will issue them not because of fighting with cryptocurrency, but in order to improve the efficiency of the banking system. Therefore, CBDCs are not in direct competition with cryptocurrencies, however, they will be such competition for private and other non-state stablecoins.
