Billionaire hedge fund manager Ray Dalio issued a stark warning about potential shifts in the global economy due to President Donald Trump’s tariff threats and erratic economic policies.

In an interview with CNBC’s Andrew Ross Sorkin during the World Economic Forum (WEF) in Davos, Switzerland, Dalio expressed concerns that the current monetary order is “breaking down.” He noted a significant shift in how central banks manage fiat currencies, highlighting a mutual apprehension between fiat holders and those reliant on it.

“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,” said Dalio, further emphasizing the unprecedented performance of gold compared to technology markets in the last year.

Image Source: Ray Dalio on X

Dalio’s comments followed Trump’s warnings about tariffs on European nations following their pushback on remarks questioning Denmark’s claim to Greenland. Dalio pointed out that Trump’s economic strategies, especially regarding digital asset regulation, could face significant changes in the upcoming mid-term and presidential elections.

Crypto Leaders Assemble in Davos

In addition to Trump and other global leaders, several executives from the cryptocurrency sector will be present at WEF this week. Coinbase CEO Brian Armstrong stated he would address world leaders about the potential of cryptocurrency to modernize financial systems and advocate for tokenization to facilitate access to capital markets.