Ray Dalio warns of banks shying away from fiat as gold surges

Billionaire hedge fund manager Ray Dalio warned that the global monetary order is breaking down amid growing uncertainty over US economic policy.

Speaking at the World Economic Forum in Davos, Dalio said central banks are no longer handling fiat currencies in the same way.

He said concerns between fiat holders and those dependent on fiat are creating a growing systemic risk.

“Fiat currencies and debt as a storehold of wealth is not being held by central banks in the same way, and there was a change,”

Ray Dalio said, adding that gold was the strongest-performing major market last year.

Dalio’s comments followed renewed tariff threats by US President Donald Trump against European countries.

He previously warned that Trump’s economic and digital asset policies could be weakened or reversed if political control shifts in future elections.

Trump is expected to attend the World Economic Forum in Davos this week.

Crypto executives are also gathering at Davos to discuss regulation, tokenisation and market structure reform.

Coinbase chief executive Brian Armstrong said he plans to meet world leaders to discuss how crypto could modernise financial systems and expand access to capital markets.