Billionaire investor Ray Dalio issued a strong warning about central bank digital currencies (CBDCs) in an interview. He pointed out that although countries are accelerating the implementation of CBDCs, this type of digital currency system directly controlled by central banks could pose deep threats to personal financial privacy and asset autonomy.
Dalio stated that the main reason governments promote CBDCs is due to their “high efficiency” attribute. Digital settlement can shorten cross-border and local payment times and reduce operational costs; at the same time, authorities can more precisely monitor fund flows for tax collection, anti-money laundering, and fiscal management. For example, under a CBDC system, taxes can be deducted instantly without waiting for traditional settlement cycles. However, he emphasized that this convenience also means greater centralized control.
In his view, CBDCs will make every transaction traceable, allowing governments to monitor individual spending patterns in real time. More extreme scenarios include authorities being able to freeze accounts, restrict fund usage, or even confiscate assets without intermediaries. When financial power and administrative authority are highly intertwined, the monetary system could be used for political or social control, which is the risk Dalio is most concerned about.
Despite ongoing controversy, central banks around the world continue to push related projects. China has tested the digital yuan, and the European Union is evaluating a digital euro scheme. Supporters believe CBDCs can enhance the competitiveness of payment systems and prevent private platform monopolies; critics, however, point out that most current designs still lack sufficient privacy protection mechanisms.
The cryptocurrency community also remains cautious about CBDCs. Coin Bureau, citing Dalio’s views, noted that compared to centralized CBDCs, decentralized assets like Bitcoin emphasize user autonomy and limited supply. Blockchain does not rely on a single authority and is therefore seen by some as a tool to counter financial surveillance.
As more countries enter pilot phases, discussions on how to balance “efficiency and freedom” are bound to intensify. Dalio’s core stance is that technological progress should not come at the expense of personal rights. In the era of digital currencies, this proposition is becoming increasingly urgent.
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