Alibaba’s former CEO, Jack Ma, recently spoke about the nature and possibilities of cryptography.
He said that the crypto industry has a disruptive nature that could contribute to the overhaul of the financial system.
He also criticized the current system, which does not provide opportunities for young people.
The founder of Alibaba, who ran the company until his recent retirement, Jack Ma, recently showed how convinced he was of the possibilities of the crypto industry. He spoke with much praise about digital currencies and pointed out various possibilities.
Jack Ma recently spoke to bankers and regulators during the federal summit in Shanghai. He discussed the role that crypto currencies could play in the global financial system of the future and noted that they could create value.
In this sense, he called for regulators and bankers to consider establishing a new financial system that includes cryptos.
The shortcomings of the current financial system
Jack Ma also noted that the current financial system – which is governed by the Basel Accords – is not good enough. In his opinion, it is too conservative and cannot adequately deal with China’s growing economy.
He noted that after the Asian financial crisis, the risk control emphasized in the Basel Accords was only focused on risk control. In other words, no attention was paid to development.
Worse still, no one even thought of offering young people or even developing countries, many of which support China, opportunities that they could benefit from if they were included in its economy.
As some may know, the Basel Accord has created international regulation for banks that would theoretically reduce risk in the global economy. But the rules became quite strict after 2008, when Basel III was adopted.
The tighter rules came as a result of the global financial crisis – the same one that forced Satoshi Nakamoto to create and launch Bitcoin.