The billionaire hedge fund manager predicts the inevitable arrival of central bank digital currencies with total control over citizens.
Ray Dalio, billionaire and co-chief investment officer of Bridgewater Associates, has warned that central bank digital currencies (CBDCs) will inevitably arrive, bringing benefits but also unprecedented government control over citizens’ finances. During an interview on the Tucker Carlson Show on Monday, Dalio stated: “I think it’s going to happen.”
Dalio explained that CBDCs could prove attractive due to ease of transactions, comparing them to money market funds in terms of functionality. However, he warned about the downsides: “They probably won’t offer interest, so they won’t be an effective vehicle to hold because of dollar depreciation.” The manager emphasized that all CBDC transactions will be known to the government, useful for controlling illegal activities but also for exercising broad control in other areas.
“There will be no privacy, and it’s a very effective control mechanism by the government,” Dalio declared. He warned that a programmable digital currency will allow the government to tax directly, establishing exchange controls. This will represent a “growing problem,” particularly for international holders of that currency, as the government can seize funds from citizens of sanctioned countries. Dalio also highlighted that one could be “cut off” from a CBDC if “politically disfavored.”
However, President Donald Trump has opposed the idea of launching a U.S. CBDC. Shortly after taking office in January 2025, Trump signed an executive order banning “the creation, issuance, circulation, and use” of a U.S. CBDC. According to the Atlantic Council‘s CBDC tracker, only three countries have officially launched a CBDC: Nigeria, Jamaica, and the Bahamas. Another 49 countries are testing CBDCs, including China, Russia, India, and Brazil. Twenty nations have a CBDC in development and 36 are still researching central bank digital currencies.
