What would happen once all countries in the world develop their own Central Bank Digital Currency (CBDC)?

I have been looking around lately around this topic and all I come up with are peoples views on why CBDC’s are bad (restricting freedoms, ect) and the other “positive” point of view on how it may educate the masses on Bitcoin - which are both totally understandable. Also, with the adoption of CBDCs increasing rapidly amongst countries it seems inevitable that this is going to happen. Although, looking at this topic from a macro level, how would this affect Bitcoin? From my understanding, if all countries were to develop their own CBDC wouldn’t the coins be able to track the coins itself? Thus leading to any amounts of fiat that were traced back from BTC/Crypto to be frozen, if governments decided to restrict cryptocurrencies as a whole? I also understand that money in general is very fluid and can seep through the cracks to retrieve it but from what I have seen, we may have a very difficult obstacle to cross in the future. Would love to hear all your thoughts on this, thanks