Global CBDC development may increase competition for cryptocurrencies, including BTC, by offering government-backed digital currencies with stability and trust. CBDCs could reduce demand for BTC in payments and as a store of value, especially in regulated markets. However, BTC’s decentralized nature and fixed supply may maintain its appeal as an inflation hedge and alternative asset, mitigating competitive pressure. The impact depends on CBDC adoption and regulatory policies.

The rise of CBDCs could indeed challenge cryptocurrencies like BTC, but Bitcoin's unique properties may sustain its role as a hedge against inflation and a diverse asset option, balancing out the competition. It'll be interesting to see how adoption rates and regulations shape the future landscape of digital currencies.