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The founder of the Chinese consortium Alibaba, Jack Ma, on Saturday lashed out against financial regulations and the international banking system. The executive said both would stifle technological innovation in the fintech area.
For Jack Ma, the current financial system should be less dependent on big banks, so he believes a new financial ecosystem should be established. According to a Bloomberg report, this new scheme should include, at its discretion, “lakes, ponds, streams and streams” to inject capital into different corners of the economy.
In the midst of his questions, the businessman pointed out that cryptocurrencies or “digital currencies” as he called them, could have a leading role in the construction of a potential new system for the next 30 years.
“Digital currencies could create value and we should think about how to establish a new type of financial system through digital currencies,” said Jack Ma. The remarks came before what will be, this week, the initial public offering (IPO). ) of Ant Group, China’s financial services technology and parent company of Alipay, which is under the control of the wealthy executive.
China on its way to digital currencies
According to Jack Ma, China should chart its own path in this matter. His message would point out that the Asian giant should distance himself from global financial guidelines, among which he cited the Basel rules.
These banking supervision arrangements, first instituted in 1974, were seen by Jack Ma as a “seniors’ club” that do not serve as methods of “regulating the future”.
The billionaire thinks that many of the world’s problems arise because of the attitude of banks towards risk control and not to talk about new developments, opportunities for young people and developing countries.
On banking business models, the founder of Alibaba thinks institutions should abandon the “pawn shop” mentality, which accepts collateral to issue loans, according to a Financial Times note.
The executive’s remarks come amid China’s testing of what would be its central bank digital currency (CBDC), better known as the digital yuan or e-RMB (electronic renminbi). The project in the Asian country has been in development for years, but in 2020 there have already been real experiments in transactions between its inhabitants.
CryptoNews recently reported that free distribution of 10 million yuan for a new proof of the digital currency has been authorized in various regions of China. Users who chose to participate in the trials received 200 yuan ($ 30) to make purchases.
As early as 2019, China was betting on becoming the first country to issue its central bank digital currency. The main reason for achieving this would be Facebook’s announcement of launching its own digital currency, Libra.
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