Ray Dalio Discusses Impact of Cryptocurrency Regulation on Reserve Currencies

According to BlockBeats, Ray Dalio, founder of Bridgewater Associates, recently expressed his views on cryptocurrency regulation and its impact on the status of the U.S. dollar as a reserve currency. Dalio stated that easing regulations on cryptocurrencies does not pose a threat to the dollar's position. However, he highlighted that the poor debt conditions of governments issuing reserve currencies, including the dollar, affect their attractiveness as reserve currencies and wealth storage options. This situation has been a factor driving the prices of gold and cryptocurrencies upward. Dalio also mentioned that he does not see stablecoins' exposure to government bonds as a systemic risk. The real risk lies in the decline of the actual purchasing power of government bonds. If stablecoins are well-regulated, they should not pose any systemic risk. He further explained that cryptocurrencies are now considered a limited supply alternative currency. Therefore, if the supply of dollars increases or demand for them decreases, cryptocurrencies could become an attractive alternative currency under these conditions.