TechFlow news, September 3 — Ray Dalio, founder of Bridgewater Associates, posted today stating that he does not believe loosening regulation on cryptocurrencies would threaten the dollar's reserve currency status. However, the poor debt conditions of the dollar and other reserve currency governments undermine their appeal as reserve currencies and stores of wealth, which has been one of the factors driving up the prices of gold and cryptocurrencies.
Additionally, Ray Dalio does not believe stablecoins' exposure to government bonds poses systemic risk. The real risk lies in the declining real purchasing power of government bonds. If stablecoins are properly regulated, they should not create any systemic risk.
Ray Dalio said that cryptocurrency is now an alternative currency with limited supply. Therefore, all else being equal, if the supply of U.S. dollars increases and/or demand for it declines, this could make cryptocurrency an attractive alternative.
