- The former CEO of Alibaba, Jack Ma, recently spoke about the nature and possibilities of crypto.
- He said that the crypto industry has a disruptive nature that could help overhaul the financial system.
- Furthermore, he criticized the current system that doesn’t provide opportunities for young people.
The founder of Alibaba, who led the company until his recent retirement, Jack Ma, has recently shown how convinced he was of the possibilities of the crypto industry. He spoke of digital currencies with quite a bit of praise, pointing out various possibilities.
Jack Ma recently addressed bankers and regulators during the Shanghai-based Bund Summit. He discussed the role that cryptocurrencies could play in the global financial system of the future, noting that they could create value.
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With that in mind, he claimed that regulators and bankers should think about establishing a new financial system that would include cryptos.
The flaws of the current financial system
Jack Ma also commented that the current financial system — the one governed by Basel Accords — is not good enough. He thinks that it is too conservative, and that this does not allow it to adequately handle China’s growing economy.
He noted that, after the Asian financial crisis, the Basel Accords-highlighted risk controlling has been focused only on risk control. In other words, there was no attention to development.
What’s worse, no one has even considered providing opportunities for young people, or even developing countries, many of which support China, and could benefit by becoming included in its economy.
As some may know, the Basel Accords has provided international regulation for banks, which would, in theory, reduce the risk in the global economy. But, the rules became rather strict after 2008, when Basel III was passed.
The stricter rules came as a consequence of the global financial crisis — the same one that forced Satoshi Nakamoto to create and launch Bitcoin.