Congressman French Hill of Arkansas recently expressed his opposition to central bank digital currencies (CBDCs). In a statement released on July 28th, 2020, Hill argued that CBDCs would “undermine the dollar’s role as the world’s reserve currency and could destabilize the global economy.”

CBDCs are digital versions of a country’s currency that are issued and regulated by the central bank. They are designed to be an alternative to traditional paper money and coins, and can be used for online payments, transfers, and other transactions. Proponents of CBDCs argue that they could provide greater access to financial services, reduce transaction costs, and increase financial inclusion.

However, Hill believes that CBDCs could have a negative impact on the US economy. He argues that CBDCs could lead to a “race to the bottom” in terms of monetary policy, as countries compete to offer the most attractive interest rates and other incentives. This could lead to a devaluation of the US dollar and a decrease in its status as the world’s reserve currency. Hill also believes that CBDCs could lead to increased government control over the economy, as central banks would have more power to set interest rates and other economic policies.

Hill’s statement has sparked debate among economists and policymakers. Some argue that CBDCs could provide greater access to financial services and reduce transaction costs, while others believe that they could lead to increased government control over the economy. Ultimately, it is up to policymakers to decide whether or not CBDCs are a viable option for their countries.