Billionaire hedge fund manager Ray Dalio has warned that central bank digital currencies are likely to be adopted despite serious risks, including the loss of financial privacy and greater government control over money.
Speaking in an interview on the Tucker Carlson Show, Dalio said CBDCs offer transactional efficiency but could fundamentally change the relationship between citizens and the state.
“There will be no privacy, and it’s a very effective controlling mechanism by the government,”
Dalio said.
Dalio argued that while CBDCs may resemble money market funds in ease of use, they would probably not pay interest, making them unattractive as a store of value amid currency depreciation.
He also warned that programmable digital currencies could allow governments to tax directly, impose foreign exchange controls, seize funds, or cut individuals off from the system if they become politically disfavoured.
Although United States President Donald Trump has banned the creation of a US CBDC via executive order, Dalio said such systems are still advancing globally.
According to the Atlantic Council, only Nigeria, Jamaica and The Bahamas have launched CBDCs so far, while dozens of other countries, including China and India, are testing or developing them.