December 4, 2020

Digital currencies will create a new type of financial system

Digital currencies will create a new type of financial system

Chinese billionaire Jack Ma said digital currencies could play a big role in the new global financial system, in connection with which he opposedglobal regulation. According to Bloomberg, the founder of China's largest e-commerce company, Alibaba, did so during a speech at the Bund Summit in Shanghai.

"Digital currency can create value and we need to think about how to create a new type of financial system using digital currency."- said Ma.

True, it is not clear what the entrepreneur, whose fortune is estimated at $ 61 billion, meant by “digital currencies”.

As you might expect, the crypto community tookbe encouraged to comment on Ma's statement. Binance CEO Changpeng Zhao (CZ) tweeted that it was "an amazing speech."

Almost immediately after that, Ethereum co-founder Vitalik Buterin asked Zhao what exactly Ma meant by "digital currencies."

Zhao replied that in this case there can be several interpretations of this statement:

“The literal translation of his words is“ digital currency ”. In Chinese culture, this meaning is subject to interpretation. This general wording avoids serious trouble. In fact, he said a lot already. Respect! "

On the one hand, cryptocurrencies are banned in China,on the other hand, bitcoin and other digital assets are still traded in the country. In addition, Chinese miners mine the maximum share of new bitcoins.

During his speech, Ma said thatglobal rules, in particular the Basel Accords (an international banking supervision system introduced in 2010), are outdated and “like a club for the elderly”.

He added that global rules are holding back China's development and "do not take into account the potential of young people or developing countries."

Digital currencies will create a new type of financial system

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