The global development of CBDCs impacts the crypto market by increasing competition and regulatory scrutiny. CBDCs, backed by governments, offer efficiency and stability, potentially drawing users away from decentralized cryptos like BTC. However, BTC’s limited supply and established network provide resilience. CBDCs may push BTC towards niche use cases, but unlikely to replace it entirely. They could also drive innovation in the crypto space as projects adapt to coexist with state-backed digital currencies. Overall, CBDCs present a challenge, but BTC’s core value proposition remains strong.