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Jack Ma expresses dissent over risk-averse regulations



Digital currency for the world
Digital currency for the world, Photo by André François McKenzie on Unsplash

On October 24, at the Bund Summit, Jack Ma, China’s great innovator, expressed a lot of anger on financial regulations. He said that such stringent rules are unsuitable for China’s future.

Basel Accords framework

The Basel Accords came as an international regulatory to wipe out recessions after the global financial crisis in 2008. However, it turned out to be an innovation restrainer in developing countries.
He highlighted that “after the Asian financial crisis, the risk control highlighted in the Basel Accords has been the priority for regulators.”

Outdated Rulebook and banking system

The traditional banking systems in China need to move towards cryptocurrency and Bitcoin. Referring to China’s feeble financial system, he appreciated the need for digital technology and the idea of a competitive environment to promote innovation in the world. Calling china as young and in the development phase, he did not find Basel’s accords a useful framework.

He made the statement, “Digital currency could create value, and we should think about how to establish a new type of financial system through digital currency.” The Twitter world came to applaud his statement to value digital currency. However, some could not comprehend the true meaning of his statement. Some Entrepreneurs learned digital currency as cryptocurrency and bitcoin.

New developments on the way

Paypal, the online payment system company, recently allowed cryptocurrency as a treasury of payment. Now the wallet category on the Paypal application includes a digital currency option for the users.

Meanwhile, China is in talks to build its new banking currency known as digital yuan. Also, Antgroup is gearing up for an IPO listing in Hongkong and Shanghai’s Star market for mobile payments business. These developments fall in line with the concept of research and innovation in the financial place.

All in all, JackMa’s revolutionary views at the Bund summit held in Shanghai called for a new financial system in the 21st century. His rally against global financial regulations nurtures the idea of a modern banking system for china and digital currencies.

An avid learner having infatuation for numbers and finance. Also, an individual with unfiltered opinions who likes to mix the metrics of both professionalism and creativity.

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