Victor Ugochukwu · Dec 14, 2020 . 5min read
Alibaba’s Jack Ma touts “Digital currencies” as the future of global finance
Jack Ma thinks digital currency could create value and we should think about how to establish a new financial system through digital currency.
By Victor Ugochukwu · Oct 27, 2020 . 6min read
Chinese richest and founder of the Alibaba group Jack Ma in a recent conference points out that “Digital Currencies” are the future of global finance and blew hot about regulations stifling innovation.
According to a Bloomberg report, while speaking at the Bund Summit in Shanghai, the founder of the e-commerce site that recently overtook Amazon in daily sales revenue said
“Digital currency could create value and we should think about how to establish a new type of financial system through digital currency,”
Significantly, Jack Ma use of the word “Digital Currencies” open in his statement to varied interpretation. As someone who has built a vast enterprise of companies and works closely with the government, one can easily interpret his use of the word “digital currencies” to mean CBDC. This stand for Central Bank Digital Currency. Obviously, China is leading the charge in this area as its Digital Yuan is already in its pilot phase.
On the other hand, if by any reason, Jack Ma meant cryptocurrencies, then Bitcoin easily comes to mind. Already, China has eased its ban on Bitcoin but still makes it illegal to conduct any form of ICO within its borders. Additionally, Sichuan Province in China currently supplies the cheapest electricity that miners use for mining the cryptocurrency. China has the largest concentration of Bitcoin miners and therefore, hash powers. And many times, the debate always arise that China could stage a 51% attack on the largest cryptocurrency network.
Binance, CEO of Chinese descent, was quick to praise Jack Ma’s speech while Vitalik Buterin expressed the cypherpunk-like scepticism. The latter asked what exactly Ma means by “Digital Currencies”.
Jack Ma calls out regulations in his digital currency advocacy speech.
On regulation, Jack Ma particularly singled out the Basel Accords; an international Banking framework established in 2010. Jack Ma castigated the policy framework as a “club for the elderly”. He says it “only focuses on risk control, not on development. His emphasis was on the fact that such regulations do not “consider opportunities for young people”. And especially for developing areas.
Jack Ma’s fintech group Ant Financial is rumoured to be planning the biggest IPO ever. Ant Financial’s pre-IPO valuation is set at $30 billion, and this will become the biggest after Saudi’s Aramco at $29 billion if it happens.
Follow Cryptodose for daily updates.