Investing.com – Currency and money as we know it are “at risk” according to investor Ray Dalio, while warning that , stablecoins or cryptocurrencies in general are not the solution.
Speaking on CNBC on Wednesday, he said the massive money printing of the US dollar and other reserve currencies has him wondering if they are forms of “efficient money.”
“We’re in a world where money as we know it is in jeopardy. We’re printing too much, and it’s not just the United States, it’s all reserve currencies.”
However, he was quick to clarify that Bitcoin is not a potential solution. Although he praised what Bitcoin has been able to accomplish in just “12 years”, he judged that the crypto is still too volatile to serve as currency:
“It will not be an effective currency. It is not an effective medium for storing wealth. It is not an effective medium of exchange,” he said.
Dalio also dismissed the idea of a solution coming from stablecoins, recalling that these are replicas of state-backed fiat money.
But Dalio has also been proactive, envisioning the creation of an “inflation-linked coin” that would serve to guarantee consumers the security of their purchasing power.
“The closest thing to that is an inflation-linked bond, but if you create a coin that says ‘OK, here’s the buying power I know I can save and put my money in over a period of time and transacting anywhere, I think that would be a good coin,” he said.