Spring 2025 brought major challenges for the crypto industry. In early April, U.S. President Donald Trump announced reciprocal import tariffs on goods from various countries, starting at 10 percent. The move rattled markets and triggered investor panic, eventually forcing the administration to delay the tariffs.
According to billionaire Ray Dalio, these developments could spell serious trouble for the entire financial system.
What will happen to the world economy
Ray Dalio, founder of Bridgewater Associates, said that the global financial order is on the verge of destruction. In his opinion, the trade duties introduced by the Donald Trump administration accelerate the processes of de-globalization and create unsustainable trade imbalances. This, among other things, could lead to the collapse of the existing monetary system.
Dalio noted that current trade tensions are disrupting the monetary, political and international order, as well as fostering alternative trade networks to circumvent the U.S. dollar.
He emphasized that America's role as the largest consumer of manufactured goods and a major debt issuer is becoming increasingly unsustainable. In addition, it would be naive to believe that trading partners will continue to sell goods to the U.S. in exchange for dollars.
Here's the billionaire's comment:
“[They’re] recognizing that whatever happens with tariffs, these problems won't go away, and that radically reduced interdependencies with the US is a reality that has to be planned for.” he said
As a result, Dalio called for more coordinated action on the part of the U.S. to address trade imbalances and increase self-sufficiency. The investor emphasized the need to directly address the public debt problem. In this way it is necessary to achieve better results compared to the current ones, which are characterized by constant struggle and instability.
The billionaire also noted that more and more countries are looking to reduce their dependence on the U.S. by forming new trade alliances and looking at alternative currencies.
“Unfortunately, thus far we haven’t seen the better ways and have instead seen disturbing fighting and volatility that are teaching lessons that are leading to irreversible bad consequences.” Dalio added
Exactly which currencies might replace the dollar is unknown. Although he has previously expressed support for "hard" assets, following the example of Bitcoin and gold in times of global uncertainty.
Previously, experts have noted that BTC is now increasingly behaving as an instrument of value preservation. Therefore, further growth in the digital asset's popularity among capital holders seems more than likely. Especially considering that Bitcoin's fundamentals, such as issuance rates and gradual decline in inflation, cannot be changed at the will of individual governments.
Dalio ended by emphasizing that in order to prevent catastrophic consequences, we need to focus on fundamental changes in the world order rather than short-term market fluctuations. He urged investors and policymakers to pay attention to these profound changes and act accordingly.
What's going to happen to Stablecoins
While Ray Dalio hints at the coming rise in popularity of Bitcoin and gold, dollar-linked stablecoins are gaining weight in the coin industry. In particular, Mastercard has announced plans to integrate such tokens into its own global payment network.
In partnership with giants Circle and Paxos, the company will begin testing tokenized deposit and USDC-like stablecoin payments in real-world commercial transactions.
"To allow consumers and businesses to use stablecoins as easily as the money in their bank accounts, Mastercard is providing an integrated, 360-degree approach," the company said in a release on Monday.
Consumers will be able "to earn rewards, pay, and spend the stablecoins in their crypto wallets via traditional cards at the over 150 million merchant locations accepting Mastercard globally, as well as withdraw stablecoins into their bank accounts with Mastercard Move."
Jorn Lambert, Mastercard's Chief Product Officer, spoke about the benefits of digital assets.
"When it comes to blockchain and digital assets, the benefits for mainstream use cases are clear,” Mastercard Chief Product Officer Jorn Lambert said in Monday's statement. "We believe in the potential of stablecoins to streamline payments and commerce across the value chain."
If the integration of stablecoins into Mastercard is successful, it could set a new standard for the entire market. For users, this means faster and cheaper international transfers, and for banks, it means an opportunity to remain competitive.
The bottom line
Against the backdrop of Ray Dalio's alarming forecasts and the increasing instability of the global economy, Bitcoin and stablecoins are increasingly strengthening their positions as alternative financial instruments. While the traditional system is looking for a way out of the crisis, the crypto market is gradually becoming a real support for investors of the future.
