Jack Ma, China's most famed entrepreneur, has run into trouble that is shocking investment circles. Photo: AFP / Minasse Wondimu Hailu / Anadolu Agency

Alibaba tycoon Jack Ma spoke to bankers and regulators gathered at the Bund Summit in Shanghai on October 24 about the likely role of digital currencies in the future global financial system.

“Digital currency could create value and we should think about how to establish a new type of financial system through digital currency,” he said, according to a Cointelegraph report.

The retired Alibaba Group boss said the current financial system governed by Basel Accords is too conservative for China’s growing economy: “After the Asian financial crisis, the risk control highlighted in the Basel Accords has been only focused on risk control, not on development, and rarely do they consider opportunities for young people and developing countries.”

The Basel Accords provide international regulation for banks aimed at reducing systemic risk in the global economy. The rules became particularly stringent with the passing of Basel III in 2008 in response to the global financial crisis. 

China is in the process of introducing a central bank digital currency, which is commonly known as the digital yuan.

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