China is rolling out digital yuan, its own version of CBDC (curiously, it's not using blockchain).
Nothing curious there.
A CBDC is not a crypto currency. It's a digital representation of the actual fiat, like the money one has in the bank.
And since the government wants full rights over that money, including the rights to empty your account if they want to, they clearly don't want traces of that recorded in a blockchain.
Also this way they don't have to pay miners or worry about 51% attacks.
You've captured pretty good most of the problems with CBDCs, but you seem to have failed to comprehend some of the implications.
All in all, I tend to agree, although for different reasons: CBDCs may give Bitcoin more legitimacy, hence making it more valuable.
CBDC, it's easier to convert bitcoin to CBDC and vice versa, so people who hold bitcoin may not even need to use an exchange to convert their BTC to fiat, and people who want to buy bitcoin can easily do peer-to-peer transaction without using a bank account.
I long for the day when the Federal Reserve issues the digital dollar. It will make conversion between bitcoin and USD even easier, and we may not need to use an exchange service.
Here I think that you are wrong. We already have stablecoins, which, although some are rather shady, we still can be pretty much sure won't give all ever transaction details to government on a silver plate. At least not all and not so easy.
Also you fail to understand how much power would CBDCs give to the govt institutions over your money.
---
All in all, CBDCs may be handy, although stablecoins have already fixed that many years ago. And CBDCs have the potential to be a very powerful tool for governments, maybe too powerful, hence
we should be rather wary about them.
I really don't understand why people enjoy giving all the details of their life for free to anybody, especially the governments, without a second thought. Learn to value your privacy!! Please!!