Ray Dalio: China’s CBDC Could Appeal to American Investors

“We haven’t been in a competitive environment because the dollar has been the world’s reserve currency,” said Dalio, the founder and co-chief investment officer of Bridgewater Associates, the world’s largest hedge fund, which manages about $150 billion.

article-image

Bridgewater Associate’s Ray Dalio; Source: Wikipedia

share
  • China’s central bank digital currency become increasingly competitive on the world stage
  • Right now, the US is producing a lot more debt and creating a supply and demand imbalance thanks to the fiscal stimulus

China is taking the lead in creating a central bank digital currency (CBDC) that’s going to become increasingly competitive on the world stage and could appeal to international as well as American investors, Ray Dalio said at a virtual bitcoin conference Friday hosted by Texas A&M University.

“We haven’t been in a competitive environment because the dollar has been the world’s reserve currency,” said Dalio, the founder and co-chief investment officer of Bridgewater Associates, the world’s largest hedge fund, which manages about $150 billion. 

“I’m not saying that this shift is going to happen quickly. But given the already overweighted nature of portfolios around the world,” and the death of the 60/40 portfolio, “the central bank will be put into a very difficult position of either having interest rates rise a lot or having to monetize, as it’s been happened before.”

Specifically, the Fed would have to buy the debt the Treasury sells, a principle of Modern Monetary Theory.

Dalio began making positive comments on bitcoin in December, and called it “one hell of an invention” earlier this year. He’s also said he’s considering digital assets as investments for new funds that would offer clients protection against the debasement of fiat money.

Right now, the US government is producing a lot more debt and creating a supply and demand imbalance thanks to the fiscal stimulus, he said.

If the demand for US debt isn’t there, the central bank “mechanistically is in a position where they will either see interest rates rise, and having the rationing of that debt—which is negative for the economy and nature of the financial assets—or they will print money and buy that debt. I think they’re going to print money and buy the debt.”

The supply and demand problem won’t just be in dollars or in bitcoin. The biggest point he made in his session was classic investing 101 advice: diversify and balance. 

“I would worry for investors who are either anti-bitcoin or pro-bitcoin,” he said, adding that we’re in a “a very major classic fiat monetary crisis of sorts,” and that investors should hold a “properly balanced” diversified portfolio of assets that can protect them against it. 

“Individuals should not be so focused on the magical thing,” he said. “[If] you put too much into it, I don’t think you could look at past returns and consider them indicative or even the volatility indicative.”

For more of Ray Dalio’s thoughts on bitcoin you can read his 17-page client note on it here.

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template (1).jpg

Research

As AI supercharges surveillance, privacy becomes a prerequisite and the winning stack will combine confidentiality with selective disclosure. Zcash’s Tachyon, composable standards on Ethereum/Solana, and compliance-aware pools aim to make private rails the new norm.

article-image

The state’s decision opens staking access to New Yorkers, signaling a regulatory shift toward broader crypto participation

by Blockworks /
article-image

The startup says it aims to rival Stripe and Worldpay by using stablecoins to speed merchant settlements from days to seconds

by Blockworks /
article-image

“S&P 500” for crypto comes as segment gains “established role in global markets,” S&P exec says

article-image

The S&P Digital Markets 50 Index combines 15 cryptocurrencies with 35 crypto-linked companies, offering investors hybrid exposure

by Blockworks /
article-image

Gnosis is betting that openness — not ownership — will define the future of onchain money

article-image

Crypto’s quest to imbue shareholder protections for tokens