Jack Ma: We don't need digital currency now, but it will be needed in the future, thousands of developing countries and young people will need it.

Alibaba's founder Jack Ma delivered a speech at the "2020 Bund Financial Summit" held in Shanghai yesterday (25th). At the beginning of his speech, Jack Ma said, "Anyway, I have already retired, so let me speak freely." For the next 20 minutes, Jack Ma sharply criticized the current rigidity of the financial system and stated that digital currency may redefine currency.

No Risk, No Innovation. Kill Innovation

https://www.youtube.com/watch?v=OenVYMs8PxE

In a speech, Jack Ma said:

"The Asian financial crisis happened, and Basel agreements emphasized risk control more and more. However, the current trend seems to be that the world is focusing only on risk control and not on development. There is little consideration for the opportunities for the youth and developing countries, which is actually the root cause of many problems in the world today."

Today's financial system is a product of the industrial age, designed to solve industrialization, not for future generations or long-term future. Jack Ma said in his speech that we now have the technology, capability, and responsibility to build a financial system that truly belongs to the future, to the youth and the next generation, and to this era. Unfortunately, many people are unwilling to do so.

Many problems in the world today, including those in China, must be solved through innovation. However, most people, especially regulatory bodies, do not seem to have a clear definition of "innovation." Jack Ma said, "Monitoring" and "management" are two different things. Monitoring is watching your development, and management is stepping in when there is a problem. However, the global ability to manage is strong, but the ability to monitor is not enough. Good innovation is not afraid of regulation. What it fears is using yesterday's methods to manage the future. Regulatory bodies advocate innovation verbally but fear the risks it brings. Ironically, innovation itself is a risk because innovation will inevitably make mistakes."

"To innovate without risk is to stifle innovation. There is no risk-free innovation in this world."

Jack Ma said that the issue with innovation should not be how to avoid mistakes but how to perfect and correct them after making mistakes while persisting in innovation.

"Many regulatory departments around the world end up becoming risk-free themselves, with no risks in their own departments, but there are risks to the entire economy, risks to economic development."

Digital Currency is the Core of the Future Financial System

In the topic of "financial innovation," Jack Ma further pointed out that if we were to build a financial system that the world will need in 30 years from now with a future perspective, digital currency will be a very important core. He candidly admitted that today's finance indeed does not need digital currency, but tomorrow will, the future will, the thousands of developing countries and young people will need it. The digital currency ten years from now may be very different from today's digital currency.

"Digital currency may redefine currency. Although the primary function of currency remains, it will definitely redefine currency, just as the iPhone redefined the phone, and making calls is just one function."

Jack Ma also pointed out that regarding digital currency, we should not seek answers from history, regulation perspectives, or research institutions, but from the market, demand, and the future.

Digital Currency = Cryptocurrency?

Many people are curious about whether the digital currency Jack Ma mentioned refers to centralized digital currencies like digital RMB or decentralized cryptocurrencies like Bitcoin. Ethereum founder Vitalik sought answers onTwitter.

In response, Zhao Changpeng, the founder of Binance, said that the meaning of digital currency in China is difficult to define. Jack Ma's use of the term "digital currency" is, in a way, to avoid scrutiny from the Chinese government.

https://twitter.com/cz_binance/status/1320358043289186305