American billionaire and hedge fund manager Ray Dalio has issued a warning about the rise of central bank digital currencies (CBDCs), noting that while they could bring certain benefits, they may also give governments unprecedented control over individuals’ finances.
“I think it will be done,” Dalio said during a wide-ranging interview on the Tucker Carlson Show on Monday, which also touched on the U.S. debt crisis, gold prices, and even the possibility of civil unrest.
Dalio, who co-founded Bridgewater Associates in 1975 and has served as its co-chief investment officer since 1985, said CBDCs could be attractive because of their convenience, likening them to money market funds in terms of ease of use. However, he also highlighted potential drawbacks.
He noted that CBDCs “probably won’t” pay interest, making them a less effective place to store value given the likely depreciation of the dollar.
Dalio further warned that all CBDC transactions would be fully visible to governments—a feature that could help curb illegal activity but also grant authorities significant control over ordinary financial activity.
“There will be no privacy, and it’s a very effective controlling mechanism by the government.”
Taxation, Forex Controls, and Political Debanking
Dalio warned that a programmable digital currency would give governments the ability to levy taxes directly—“they can take your money”—and enforce foreign exchange controls. This, he said, could become a growing concern, especially for international holders, as authorities could seize funds from nationals of sanctioned countries.
He also cautioned that individuals could be “shut off” from a CBDC if deemed politically disfavored.
However, a U.S. CBDC is unlikely to appear anytime soon. Former President Donald Trump has been openly opposed to the idea, and shortly after taking office in January 2025, he signed an executive order banning the “establishment, issuance, circulation, and use” of a U.S. CBDC.
Global CBDC Landscape
According to the Atlantic Council’s CBDC tracker, only three countries have fully launched a CBDC: Nigeria, Jamaica, and The Bahamas.
Meanwhile, 49 nations—including China, Russia, India, and Brazil—are in pilot testing, 20 countries have CBDCs in development, and 36 are still in the research phase.
India’s central bank reportedly proposed a plan in January 2026 to link BRICS CBDCs, aiming to streamline cross-border trade and tourism payments.
