Alibaba Group founder Jack Ma criticized global financial regulations for stifling innovation and urged China to develop a system that accommodated digital currencies not one that stifled it.
In Brief
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Jack Ma believes regulators are on the wrong side of the fence when it comes to financial innovation.
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China is still a “youth” and requires more innovation for local (Chinese) innovation through digital currencies.
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Given the CCP’s zero tolerance policy for dissidents, ‘digital currencies’ is likely code for cryptocurrencies.
“After the Asian financial crisis, the risk control highlighted in the Basel Accords has been” the priority for regulators, Jack Ma said during the Bund Summit in Shanghai on Saturday. Today, the world “only focuses on risk control, not on development, and rarely do they consider opportunities for young people and developing countries.”
The Basel Accords, which Ma daringly likened to a club for the elderly are used in order to solve problems for financial systems that have been in operation for decades. China, however, is still a “youth” and needs more innovation to build an ecosystem for the healthy development of its local industry, according to the Alibaba founder.
Digital currencies – for lack of a better word – could play an important role in building the type of financial infrastructure that will be needed in the next 30 years, said Ma.
“Digital currency could create value and we should think about how to establish a new type of financial system through digital currency.”
It’s safe to assume that Jack Ma could only say so much without getting in too much trouble with the Chinese Communist Party (CCP), who would have no trouble silencing dissidents if they go out of line. Earlier this year, Chinese tycoon Ren Zhiqiang was sentenced to 18 years in prison for criticizing Xi Jinping’s handling of corona.
Just last week, news broke that Central Banks are also working on launching various forms of digital currencies (CBDC’s) via some form of ledger technology, confirming interest in the cryptocurrency landscape in the process.
Ma’s fintech giant Ant Group Co. plans initial public offerings in both Shanghai and Hong Kong. The billionaire founder said that the firm set the price of its Shanghai listing on Friday, without providing additional information.
The deal is one of the most highly anticipated IPOs in years, on course to break records, surpassing Saudi Aramco’s historical $29 billion share sale in 2019, per a Bloomberg report.
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