Bridgewater Associates CEO says digital yuan can compete with bitcoin

In an interview with news outlet CNBC, Bridgewater Associates founder, and Chief Executive Officer Ray Dalio acknowledged bitcoin can establish a strong footing in the years to come, but also said China’s digital version of its fiat currency, Yuan, can compete with it.

The executive said he believes the Renminbi will be a more significant, strong, stable, and attractive currency and projecting it to be and widely used one in the years ahead.

The Central Bank Digital Currency (CBDC) of China, also dubbed as Digital Currency Electronic Payment (DCEP), is being recognized as among the state-backed digital currencies, expected to have an official launch before next year’s Beijing Winter Olympics.

Already a tested protocol

For the past three years, China engaged in extensive testing of the protocol in terms of legality and technological potentials. Last year, for limited testing, the DCEP had its roll-out and millions of dollars worth of transactions reportedly occurred during the first month of testing.

Expressing confidence in the project, Dalio said the digital Yuan will be more competitive than the rumored digital dollar that is said to be currently being explored in the United States.

If accepted internationally, the executive believes the digital version of the fiat currency will be a viable alternative to many investors. “People would soon be thinking of currencies that have the best fundamentals,” he said, adding these are the ones that are more competitive and threatening to countries.

Holding bitcoin

Despite his expressed confidence in the digital Yuan, Dalio recently admitted he is a holder of the leading crypto, bitcoin.

The billionaire founder of hedge fund Bridgewater Associates made the announcement during the virtual conference Consensus 2021 last week, following the company’s release of “Our Thoughts on Bitcoin” back in January.

The revelation also came at the time when traditional markets seemed to be weighted down with the risk of inflation.

 

Image courtesy of Cointelegraph News/YouTube

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