Billionaire investor Stanley Druckenmiller said in an interview with CNBC published Tuesday that current Federal Reserve policies could threaten the status of the U.S. dollar.
The chairman and CEO of Duquesne Family Office, who along with famed investor George Soros made huge, profitable bets against the British pound in 1992, said he sees the Fed’s policies as flawed and its quantitative easing program as a long-term risk.
“The problem has been clearly identified”, Druckenmiller said, adding that the problem is central bankers.
Druckenmiller also said the greenback will lose its reserve currency status “within 15 years”.
“If we’re going to monetize our debt and we’re going to enable more and more of this spending, that’s why I’m worried now for the first time that within 15 years we lose reserve currency status and of course all the unbelievable benefits that have accrued with it,” he said.
Druckenmiller also touched on the cryptocurrency market saying that given the lack of alternatives, the greenback’s replacement could come come from the crypto world.
The ultimate solution could be “some kind of ledger system invented by some kids from MIT or Stanford”, Druckenmiller said, though he admitted he didn’t “know what it will be.”