I see it as a good replacement for Debit/Credit transactions for cashless payments that function closer to cash in ordinary contexts without the need for paper.
It's not a replacement for BitCoin/cryptocurrency, as peers on the network determine the inherent legitimacy of the data rather than a central authority. With Digital Euro, the government could potentially de-authorize or seize any particular token if they believe it was acquired by fraudulent or illegitimate means. Central banks already print out tons of money to suit their purpose anyway, this will just help reduce friction, overhead between government and lenders.