You make a great point, my friend. It's true that with the introduction of CBDCs, cash and physical currencies may become less common or even obsolete in some cases. However, we must also remember the purpose of decentralized cryptocurrencies like Bitcoin.
Cryptocurrencies like Bitcoin provide its users with full financial liberty which gives everybody an equal playing field in society by storing monetary power unto blockchain and held accountable not under centralized discretion. While it is true that governments aim to monitor transactions over CBDCs