Summary
- Ray Dalio said CBDCs will ultimately have to be adopted worldwide and that financial privacy will effectively disappear.
- He said CBDCs could become a very powerful government control tool—enabling taxation, account freezes, and controls on capital movements—and that a non-interest-bearing structure could erode currency value.
- Dalio warned of a U.S. financial crisis driven by excessive debt and said allocating 5~15% of a portfolio to gold is a desirable core defensive asset strategy.
Ray Dalio, founder of the world’s largest hedge fund, argued that the spread of central bank digital currencies (CBDCs) is inevitable and could lead to the end of financial privacy.
According to CoinDo, a media outlet specializing in virtual assets (cryptocurrencies), Dalio said in an interview on the 9th that “central bank digital currencies will ultimately have to be introduced worldwide,” while adding that “efficiency and convenience do not necessarily mean safety.”
He described CBDCs as “a very powerful tool of control that allows governments to look into all transactions in real time,” noting that “financial privacy will effectively disappear.” He added, “Through this, governments will be able to levy taxes directly, freeze accounts or seize funds, and control capital movements.”
Dalio particularly took issue with the “programmable” nature of CBDCs. He said “digital money can be designed to restrict where and how it can be used, and can be used to automatically enforce FX controls or sanctions.” He also said, “Most CBDCs are likely to be structured so they do not pay interest,” adding that “this means the value of the currency declines over time.”
He noted, however, that the United States for now is taking a cautious stance on adopting a CBDC. Dalio said, “The U.S. is hesitating to introduce a digital dollar due to concerns about privacy, civil liberties, and abuse of government power.” In fact, President Trump issued an executive order early last year banning the issuance and use of a federal-level CBDC.
Alongside the CBDC debate, Dalio also warned about America’s structural debt problem. He said, “The U.S. is moving closer to a major financial crisis due to excessive debt,” adding, “If demand to absorb the supply of Treasuries declines, the central bank will have no choice but to intervene more aggressively.” He likened this to “a heart attack of the financial system.”
Against this backdrop, Dalio again underscored gold as a core defensive asset. He said, “Gold is the only money that is not someone else’s debt,” adding that “allocating 5~15% of a portfolio to gold is desirable to guard against currency debasement and system risk.”
Dalio added, “The world is entering an era of ‘capital war’ in which capital and finance are weaponized,” and “CBDCs are not merely a technological innovation, but a tool that can fundamentally change the relationship between the state and individuals.”
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
