For the executive, “digital currencies” would shape the future of finance. He believes that today’s financial system should be less dependent on banks.

The founder of the Chinese consortium Alibaba, Jack Ma, struck at financial regulations and the international banking system. The executive said that both would suffocate the technological innovation in the fintech area.

For Jack Ma, the current financial system should depend less on the big banks, so he believes in the establishment of a new ecosystem in finance. This new scheme should include, at its discretion, “lakes, ponds, streams and streams” that allow the injection of capital into different corners of the economy, according to a Bloomberg report.

Amid his questioning, the businessman stressed that cryptocurrencies, or “digital currencies” as he called them, could play 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 kind of financial system through digital currencies,” said Jack Ma. The remarks came ahead of the initial public offering (IPO) of Ant Group, the Chinese financial services tech and parent company of Alipay, which is under the control of the wealthy executive.

China on its route to digital currencies

According to Jack Ma, China should chart its path in this matter. His message would point out that the Asian giant should distance itself from global financial guidelines, among which he mentioned the Basel regulations.

Jack Ma views these banking supervision arrangements as “elders’ clubs” 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 about risk controls and not talking about new developments, opportunities for young people, and countries in the process of development.

On the business models of banks, the founder of Alibaba thinks that institutions should abandon the mentality of “pawnshop” which accepts guarantees to issue loans, according to a note in the Financial Times.

The executive’s remarks come amid tests by China on its central bank digital currency (CBDC), or the digital yuan or e-RMB (electronic renminbi). The project started in the Asian country some years ago, but in 2020 China unleashed real experiments with transactions among its inhabitants.

The approval of the distribution of 10 million yuan in various regions of China. The free distribution of 10 million yuan was authorized for a new trial of the digital currency. Users who chose to participate in the trials received 200 yuan ($ 30) to make purchases. In early 2019, China tried to become the first country to issue its central bank digital currency.

By: Jenson Nuñez.