Dalio warns monetary order ‘breaking down’ as fiat shifts…

Dalio warns global monetary order is 'breaking down' as central banks shift holdings; gold outperforms amid Trump trade tensions and crypto pushes tokenization in Davos

  • Ray Dalio warned the global monetary order is “breaking down” as central banks change how they hold fiat and debt.
  • Dalio said both fiat holders and borrowers now worry about each other, creating future risks.
  • He noted “The biggest market to move last year was the Gold market, far better than the tech markets and so on.”
  • His comments came as Donald Trump threatened tariffs after leaders pushed back on his comments questioning Denmark’s “right of ownership” to Greenland.
  • Crypto executives, including Brian Armstrong of Coinbase, are in Davos to discuss tokenization and U.S. digital-asset legislation after a markup was postponed.

Billionaire hedge fund manager Ray Dalio spoke at the World Economic Forum in Davos and warned the global monetary order was deteriorating. Speaking to CNBC’s Andrew Ross Sorkin, he said central banks were no longer holding fiat and debt the same way, creating mutual concern between holders and users of fiat. He added that markets reflected this shift, with gold outperforming other sectors last year (see his post).

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Dalio warned the change in central bank behavior could lead to broader capital tensions. He said, “Fiat currencies and debt as a storehold of wealth, is not being held by central banks in the same way, and … there was a change.” He described the monetary order as “breaking down.”

His remarks followed a threat by Donald Trump to impose tariffs after other leaders pushed back on the president’s public questioning of Denmark’s “right of ownership” to Greenland, an episode reported by Europe/trump-tells-norway-he-no-longer-feels-obligation-think-only-peace-2026-01-19/”>Reuters. The debate over trade and national claims added context to Dalio’s warning about rising capital tensions.

Many crypto executives also met in Davos. Brian Armstrong, CEO of Coinbase, said he would discuss how crypto can update financial systems and push tokenization to broaden access to capital markets. He planned talks with world leaders and bank executives about a U.S. digital-asset market structure bill after a scheduled markup was postponed last week.

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