Binance CEO Changpeng Zhao hailed Alibaba Holdings co-founder, Jack Ma, for openly commenting on crypto regulations in China. Ma was speaking at the 2nd Bund Finance Summit organized by the China Financial Forty Forum in conjunction with various organizing committee member institutions.
In his speech, Ma indicated that digital currencies are the solutions for societal challenges and more focus should be directed to developing a seamless updated financial system.
CZ tweet attracted the community’s attention, as Ethereum co-founder Vitalik Buterin questioned whether Ma meant cryptocurrency or centralized digital currencies by the term digital currency.
Zhao replied: “The literal translation of the word he used is “digital currency”. In the Chinese culture, the meaning is up for interpretation.”
Apparently, with China’s ban on cryptocurrency trading, Ma’s open speech on China’s crypto regulations could attract public debate.
“That’s pretty much as far as he can push without getting into serious trouble for such a speech. He did push a lot of buttons though. Respect!,” Zhao asserted.
Notably, China is rushing to implement a seamless digital currency dubbed the digital Yuan to tap into the global market.
Recently, Chinese central bank completed a weeklong public test on its digital yuan in selected merchants.
However, the country’s digital currency system is facing fierce competition from Jack Ma’s funded Alipay, which has significantly ingrained into China’s digital payment processing industry.
According to Ma, today’s global financial system must be reformed to avoid plunging the world into unprecedented chaos.
Ma further indicated that digital currencies will further aid the financial system in uplifting 80% of the world’s population instead of the 20% that has largely benefited from the siloed financial system.
China is on the verge of transitioning from depending on global trade in its economy to a new order that focuses on domestic trade success.
The strategy is dubbed ‘Dual Circulation’.
Not only was China pushed to relook on its domestic market by the coronavirus pandemic but also from growing global digital currency demand.
China is competing with other global central banks in creating a seamless and more so an interoperable digital currency. Hereby aiming to dethrone the United States dollar as a global reserve currency.
Whether Ma meant cryptocurrencies or CBDCs by the term digital currencies in his speech, the fact remains the world is ready to adopt a new financial system that is all-inclusive.