Alibaba founder and Chinese billionaire, Jack Ma, praises the emergence of digital currency and stresses the point that a new financial system should be launch based on digital currency.

In his speech at Bund Financial Summit on Oct.24, Jack Ma, founder of economic giant Alibaba, propagates the need and importance of digital currencies. According to the Chinese second-richest person, a digital currency can “redefine currency, just like Apple has redefined mobile phones.”

New Financial System

It is necessary to work on the creation of a new financial system while supposing the central role of digital currency. For a better future, we should employ digital currency for global trade. It is necessary to think about how to build a new financial system through digital currency.

For Bitcoin’s underlying technology, blockchain, Alibaba holds a very positive view for a long time. According to KISSPatent’s report, it has applied the largest number of patent applications and it even leads other giant techs, such as Bank of America, IBM, Mastercard, nChain, and Walmart in blockchain patents. IMB comes at the second number in holding blockchain patents.

For Bitcoin, Ma does not hold a positive view as he expressed a very negative thing for the world’s leading digital asset in 2018. According to Alibaba’s founder, blockchain “itself isn’t the bubble, but bitcoin likely is.”

China is very serious about digital currency and is near to launch central bank digital currency or digital yuan. It started working over the developments of digital currency many years back.

Last week, China’s central bank, People’s Bank of China, distributed digital currency called DCEP worth $1.5 million to 50,000 residents in Shenzhen. Citizens can buy things by using digital currency on 3,389 stores throughout the city. According to local reports, the central bank has received good feedback from people. Users have updated their digital payment system to received digital yuan. After spending airdropped DCEP, people have requested additional funds in DCEP. People say the digital wallet app works similarly to Alipay, but it does not require an internet connection or linkage with a bank account.