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Alibab founder Jack Ma believes China needs blockchain

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Why Jack Ma’s Alibaba Is Championing Blockchain In China

Alibab founder Jack Ma believes China needs blockchain

Alibab founder Jack Ma believes China needs blockchain
CONTENT

  • Jack Ma believes China’s financial system needs a blockchain

  • CBDC Implementation in China May Change Existing Financial System

  • Chinese authorities are considering a possible ban on the creation of corporate digital currencies

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Jack Ma, founder of Alibaba and Ant Group, is confident that China’s financial system lacks technological solutions and blockchain tools to make it even more efficient. At the moment, the Chinese economy is under pressure from large state and private banks.

Alibab founder Jack Ma believes China needs blockchain

The Basel Accords are not a panacea!

Jack Ma, a Chinese billionaire founder of Alibaba and Ant Group, questioned international financial rules for the Chinese economy and suggested that traditional banks change their pawnshop operating model. Speaking at the Bund Summit in Shanghai, Ma said the Basel Accords, which instruct regulators around the world to use a range of sophisticated indicators to monitor risks, were developed by the “senior club”. He’s not convinced that China needs to follow them rigorously.

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Ma argues China’s biggest problem is the lack of a functioning financial system, he compared the Basel Accords to the wrong therapy.

“The symptoms of Alzheimer’s and polio may look the same, but they are two completely different diseases. If a child takes Alzheimer’s medicine to treat polio, many new problems will arise. The Basel Accords are meant to cure the ills of an aging banking system, it is a cure for the elderly … but China’s financial system is still in its infancy, ”Ma is quoted as saying by the local South China Morning Post.

Alibab founder Jack Ma believes China needs blockchain

Jack Ma noted that the Chinese banking system was designed for the era of industrial development, but in the future it will need an inclusive, sustainable and green system that will use new technologies such as big data, cloud computing, and blockchain..

China’s CBDC could change the country’s financial system

Jack Ma sees many flaws in the country’s current financial system, but the introduction of digital currencies could completely change it. Recently, the Chinese authorities began testing the central bank’s cryptocurrency (CBDC), which was developed late last year. In early October, the Chinese government announced a digital yuan airdrop for Shenzhen residents. As reported by the BeInCrypto portal, the authorities decided to hold a lottery, in which 10 million digital yuan will be drawn. Winners will be able to receive up to 200 digital yuan. Digital RMB support already implemented in 3389 stores.

As previously reported by the editorial staff of BeInCrypto, employees of state-owned banks in several cities of the PRC, including Shenzhen, have long been conducting internal testing of the application for transferring funds and making payments..

At the same time, the Chinese authorities are considering a ban on the creation and distribution of digital currencies by commercial organizations and corporations. The Central Bank of China has issued a public consultation decree on the approval of amendments to the law on the activities of the regulator. According to Article 22 of the Law on the People’s Bank of China, “no legal entity or individual may produce or sell tokens, coupons and digital tokens to replace the RMB in circulation in the market.”.

So far, the proposed amendments have not come into force, and the Central Bank itself calls for public consultations in order to “improve the financial situation” in the country. Also, the proposed amendments mention the digital yuan, which, according to the Central Bank, will remain the only legitimate currency along with a physical banknote, BeInCrypto reports..

 

Alibab founder Jack Ma believes China needs blockchain

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