• Ray Dalio, the founder of Bridgewater Associates, has suggested a move to inflation-linked currencies amid the crash of both fiat and cryptocurrencies.
• He argued that fiat currencies would lead to global financial instabilities and that neither bitcoin nor stablecoins are the solutions.
• Dalio proposed a monetary system dubbed „inflation-linked-coin“ that cannot be seen but performs a value that makes users acquire a strong purchasing power.
Ray Dalio, the founder of Bridgewater Associates, recently spoke out about the dire state of the current global financial system. During an interview with CNBC Squawk Box on February 2, 2023, Dalio suggested that a move to inflation-linked currencies is necessary in order to avoid further financial instabilities. He noted that neither bitcoin nor fiat currencies can provide the stability needed in a world economy.
Dalio noted that although Bitcoin has been around for 12 years, it is still considered to be highly volatile, meaning it can’t stabilize an economy. He also argued that stablecoins should not be seen as a store of value, as they are merely replicas of existing fiat currencies. As an alternative, Dalio proposed a new monetary system dubbed “inflation-linked-coin”. This system would be invisible, yet it would be designed to give users a strong purchasing power.
However, Dalio’s views were met with some criticism. Erick Weiss, the founder and chief investment officer of Digital Asset Fund for family Bitcoin, argued that Dalio was praising Bitcoin as a store of value, yet was calling for a system that he believed could never be achieved.
Overall, Ray Dalio is advocating for a move to inflation-linked currencies as a means of avoiding further financial instability. He believes that Bitcoin and stablecoins are not suitable solutions, and has suggested a new monetary system that would offer users a strong purchasing power. While his views have been met with some dissent, it is clear that Dalio’s suggestions should not be dismissed without further consideration.