49 countries are piloting CBDCs… Ray Dalio: "CBDCs could spell the end of privacy."

Ray Dalio: "CBDCs Will Eventually Come Out…They Could Be a Tool for Government Control"

American billionaire and hedge fund manager Ray Dalio has warned against the rise of central bank digital currencies (CBDCs), expressing concerns that the technology could offer convenience while also imposing a high level of government fiscal control.

In a recent interview with Tucker Carlson on Fox News, Dalio stated that CBDCs will eventually be adopted, adding that while they offer an attractive transactional convenience, they come at the cost of what he called the "end of privacy." He warned that they could function similarly to money market funds and, because they don't earn interest, would be difficult to protect against a dollar's depreciation.

Dalio, who founded Bridgewater Associates and served as its longtime Co-CIO, warned that CBDCs pose a significant risk of being misused as a tool of political control beyond legal oversight. He emphasized, "All transactions based on CBDCs can be tracked in real time by the government. While this may curb smuggling and illicit finance, it also increases the government's control over citizens' assets in an abnormally large way."

"Tax collection, foreign exchange control, and even political exclusion are possible."

Dalio raised the possibility that CBDCs, operating as "programmable money," could be misused for tax collection, foreign exchange regulation, and political alienation. He said, "Governments could directly collect taxes with CBDCs and manage foreign exchange at will," adding, "They could even exclude politically undesirable individuals from the digital currency system."

He expressed particular concern that the assets of international CBDC users or nationals of sanctioned countries could be easily seized by governments. He argued that such controls could serve as a means of "holding hostage" private funds in future diplomatic and geopolitical conflicts.

"American CBDC? Trump opposes and puts the brakes on."

However, the United States is still reluctant to adopt CBDCs. President Trump signed an executive order prohibiting the issuance, circulation, and use of CBDCs immediately after taking office in January 2025, effectively putting the brakes on the introduction of a US version of a digital dollar. Since his election campaign, Trump has consistently opposed CBDCs, arguing that they would become "an excessive tool of government control."

Globally, only three countries—Nigeria, Jamaica, and the Bahamas—have officially adopted CBDCs, while 49 countries, including China, Russia, India, and Brazil, are piloting them. Twenty countries, including South Korea, are in the development stage, and 36 are still conducting research. Recently, the Reserve Bank of India proposed a CBDC-linked solution for trade and tourism payments among BRICS countries, further fueling the internationalization of digital currencies.

Dalio warned that while CBDCs could become a key infrastructure for the global financial ecosystem, they also carry significant risks that could limit the economic freedom of individual citizens. Whether CBDCs become a tool for financial innovation or a tool to undermine freedom depends on the policy decisions of each country.

💡 "Government Currency Control, Now 'Programmable Money'?"

Ray Dalio warns that the future of central bank digital currencies (CBDCs) is not simply a technological innovation, but rather the dawn of an era of "real-time financial control by the state." Just how far will we allow this control to extend?

To prepare for the issue that the government's digital currency issuance could threaten our economic freedom, understanding macroeconomic trends and the structure of digital currency is essential.

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• Develop analytical skills based on case studies: Review past financial policies and responses to the crypto market and apply them to real-world investment strategies.

We live in an era where CBDCs are becoming game-changers that will revolutionize the financial landscape. The key to investing is no longer technology, but the ability to understand structure.

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This article was summarized using a TokenPost.ai-based language model. Key points in the text may be omitted or inaccurate.

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