CBDCs, unlike Bitcoin, enable unprecedented government oversight of transactions, raising privacy concerns. For example, China’s digital yuan allows transaction monitoring, contrasting with Bitcoin’s pseudonymous, decentralized framework. This distinction positions Bitcoin as a preferred choice for users prioritizing privacy and freedom from state control, as highlighted in discussions on X. However, CBDCs’ ease of use and legal tender status could draw mainstream users away from Bitcoin, especially in cashless economies. The competitive pressure on Bitcoin depends on whether users value stability and accessibility over autonomy, with Bitcoin likely retaining a niche but loyal user base.