Ray Dalio warns CBDCs could give governments greater control

American billionaire and hedge fund manager Ray Dalio has warned that central bank digital currencies (CBDCs) are coming and will offer benefits while potentially allowing governments to exert more control over people’s finances. “I think it will be done,” he said in a wide-ranging interview on the Tucker Carlson Show, noting CBDCs could be appealing due to the ease of transactions and comparing them to money market funds in functionality.

Dalio cautioned that CBDCs “probably won’t” offer interest, so they would not be “an effective vehicle to hold because you’ll have the depreciation [of the dollar].” He also warned: “There will be no privacy, and it's a very effective controlling mechanism by the government.” A programmable digital currency, he said, would enable the government to tax directly — “they can take your money” — and to establish foreign exchange controls.

United States

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