The launch of CBDCs may disrupt the crypto market by increasing competition and regulatory scrutiny. CBDCs, backed by central banks, could reduce demand for volatile cryptocurrencies like Bitcoin, as they offer stability and trust. Stricter regulations or bans on cryptos to favor CBDCs may suppress market growth. However, CBDCs could boost digital currency adoption, potentially integrating with cryptos for efficient transactions. Market volatility may rise due to shifting investor preferences.[](https://www.financemagnates.com/cryptocurrency/coins/the-rise-of-central-bank-digital-currencies-cbdcs-impacts-on-the-crypto-market/amp/)