Ray Dalio Doubts Central Banks Will Embrace Bitcoin

Billionaire hedge fund manager Ray Dalio says he is skeptical as to whether central banks will consider holding Bitcoin (BTC) as a reserve currency, citing privacy concerns.

That’s as the largest crypto by market cap nears its all-time high (ATH) of $124,457.12 after breaking above the $120K barrier in the last 24 hours, according to data from CoinMarketCap.

BTC price chart (Source: CoinMarketCap)

Bitcoin Blockchain Is Too Public For Central Banks, Argues Dalio

Dalio took to X and shared a clip of an interview he had on the Master Investor Podcast, in which he weighed in on what role Bitcoin could have in the global financial system.

“I doubt that any central bank will take it on as a reserve currency,” he said. 

Dalio then said that the Bitcoin blockchain is too public for central banks, who might want to keep their transactions private. 

He added that there is also the risk that Bitcoin’s source code will be altered in some way in the future, which could break the blockchain and “make it less effective.” 

I can’t say exactly how effective Bitcoin is as a money, but it’s being perceived by many as an alternative money and so is worth paying attention to.

Money needs to be both a medium of exchange and a storehold of wealth — and the latter is more important.

I doubt that any… pic.twitter.com/VfAQGA8GDb

— Ray Dalio (@RayDalio) October 2, 2025

The hedge fund founder then said that “money needs to be both a medium of exchange and a storehold of wealth – and the latter is more important.”

Dalio did, however, say that Bitcoin is “being perceived by many as an alternative money and so is worth paying attention to.”  He concluded his post by saying that he does hold some Bitcoin in his portfolio, “but not much.” 

Dalio’s comments follow previous remarks he made, when he suggested that cryptocurrencies could serve as an “attractive alternative” to struggling fiat currencies. 

He went on to reason that if the supply of the dollar rises or demand for the greenback falls, that investors could end up turning to cryptos to protect their portfolios.

In July this year, Dalio had also advised that investors have a 15% allocation to Bitcoin or gold, citing potential fiat currency devaluation risks amid the spiraling US debt. However, he did show a stronger preference for gold over Bitcoin, and called the commodity the “purest play” for investors that want to preserve their portfolios’ value.

Analyst Says Bitcoin’s Transparency Is A Feature, Not A Bug

Crypto analyst and author Adam Livingston countered Dalio’s arguments and said that the Bitcoin blockchain’s high levels of transparency is a feature and not a flaw.

According to Livingston, “Public auditability eliminates the very opacity that let shadow banking implode in 2008.”

Hey Ray – a quick word about your take on Bitcoin:

Store-of-value test already passed. In 16 years Bitcoin rose from zero to a 2.4 trillion-dollar asset, crushed gold and every fiat currency on long-term purchasing-power charts, and settles $10-plus trillion on-chain without… https://t.co/TIPaUXnt4v

— Adam Livingston (@AdamBLiv) October 2, 2025

With regards to the store of value test, Livingston said that Bitcoin has already proven itself as a portfolio preserver. 

In his post, he highlighted how BTC has risen from zero to a $2.4 trillion asset, adding that it has “crushed gold and every fiat currency on long-term purchasing-power charts.” The analyst the noted that Bitcoin “settles $10-plus trillion on-chain without bailouts or downtime.” 

Livingston also said that “central-bank blessing is irrelevant” in Bitcoin’s case. 

“The dollar was not born inside the Bank of England, and the Internet did not need the Post Office,” he wrote.

“Corporations, ETFs, and hundreds of millions of individuals are adopting Bitcoin because they choose uncensorable collateral, not because a committee stamped it,” Livingston added. 

Governments Work Towards Creating Their Own Bitcoin Reserves

While Dalio argues that central banks will likely stay away from Bitcoin as a reserve currency, governments across the globe have pushed forward with creating their own strategic Bitcoin reserves.

In March this year, US President Donald Trump signed an executive order to create a “Strategic Bitcoin Reserve,” which will be built using BTC that was seized by federal agencies. Under the order, these assets would not be sold and would be managed as reserve assets.

US Representative Mark Begich also introduced a bill proposing that the government acquire 1 million BTC over five years using mechanisms that are considered “budget neutral.” 

El Salvador has already made Bitcoin legal tender and has a reserve of more than 6,102 BTC.

Meanwhile, two members of the Swedish Riksdag filed a motion urging the government to study creating a national Bitcoin reserve. Similar to Trump’s order, this reserve would be funded through seized assets. 

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