American billionaire and hedge fund manager Ray Dalio has warned that central bank digital currencies (CBDCs) are coming, offering benefits but also potentially allowing governments to exert more control over people’s finances.
“I think it will be done,” said Dalio on CBDCs in a wide-ranging interview on the Tucker Carlson Show on Monday, which also included topics on the US debt crisis, gold prices, and even a potential civil war.
Ray Dalio is a billionaire hedge fund manager who has been co-chief investment officer of Bridgewater Associates since 1985, after founding the firm in 1975.
During the interview, Dalio said CBDCs could be appealing due to the ease of transactions, likening them to money market funds in terms of functionality, but he also cautioned about their downsides.
He said there will be a debate, but CBDCs “probably won’t” offer interest, so they will not be “an effective vehicle to hold because you’ll have the depreciation [of the dollar].”
Dalio also cautioned that all CBDC transactions will be known to the government, which is good for controlling illegal activity, but also provides a great deal of control in other areas.
“There will be no privacy, and it’s a very effective controlling mechanism by the government.”
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