Ray Dalio, the founder of the world's largest hedge fund and a billionaire investor of Bridgewater Associates. He has mentioned that the digital yuan will be more competitive than the digital dollar.  

On Monday In an interview with CNBC, Dalio specified that “he thinks the U.S. will issue a digital dollar one day” and "it will surely be viable." But it won't be the cheapest one, with its price possibly hit by rising U.S. debt levels, he said. 

On the other hand, the digital yuan will be more inexpensive in terms of pricing and return, stated Dalio. It will be "an actual viable alternative" to several investors if it is accepted internationally and comes with attractive interest rates, he mentioned. 

Yuan: A top reserve currency 

Dalio also believes China's yuan to become a top reserve currency preferably than expected. China is presently the world's biggest trading nation, meaning it is the quantity of one country in exports and imports. Dalio expects more trade and more financial transactions to be denominated in yuan. 

Digital yuan, the world’s reserve 

The DCEP (short for Digital Currency, Electronic Payment), and China’s central bank digital currency (CBDC) is the indication among state-backed digital currencies. It is expected to be launched before the Winter Olympics in Beijing next year. 

The country has widely tested the protocol over the past three years, in expressions of both legality and technological prowess. It rolled out the DCEP in limited testing last year. Millions of dollars worth of transactions reportedly occurred within the first month of challenging alone. 

Holding Bitcoin 

The Bridgewater boss further expected the digital yuan to one day, possibly, become one of the world’s leading reserve currencies. It is part of the eight reserve currencies renowned by the IMF but falls behind Swiss francs, US dollars and British pound. Meanwhile, Dalio’s comments come weeks after he understood he held Bitcoin as traditional markets appeared weighted down with the risks of inflation.