The current version of Phoenix offers no advantage regarding privacy over existing, hosted, custodial wallets. We (ACINQ) know the final destination and amount of payments.
Discussion
What difference are they between Acinq phoenix and a CBDC system ?
CBDCs will replace all fiat eventually, cash included.
Unless your grocery stores accepts Bitcoin, you won’t have any other option than having zero privacy when spending your fiat.
Meanwhile, if you’re unhappy with Acinq/Phoenix privacy policy, or for any other reason, you can choose to use any other of the dozen lightning wallets available, or you can always choose to run your own node and watchtowers for maximum privacy.