Investor Ray Dalio has issued a warning about the potential risks posed by central bank digital currencies (CBDCs), highlighting concerns over financial privacy and government overreach. Dalio argues that CBDCs, unlike decentralized cryptocurrencies such as Bitcoin, could enable authorities to implement instant taxation, enforce capital controls, and restrict access to certain individuals, thereby reducing financial privacy. CBDCs are digital forms of national currency issued by central banks, currently being piloted by dozens of countries to modernize payments and enhance monetary policy. Dalio cautions that these centralized systems could provide governments with unprecedented oversight of financial transactions, allowing for real-time monitoring and control. He emphasizes the risk of CBDCs being used as a "very effective government control mechanism," potentially leading to systemic control over personal finances and raising civil liberties concerns.