Chinese Billionaire and Alibaba group founder, Jack Ma, when speaking to the audience of regulators and bankers in Shanghai’s Bund Summit, said that digital currencies are the future financial systems. As digital currency would create value, and new forms of monetary systems need to be established through digital currency. The current financial system is very conservative, and it is not a proper fit for the young economy of China.
After the financial crisis in Asia, the Basel Accords concentrated on risk control and not on the development of financial systems. They rarely provide an opportunity for the young economy. The Basel Accords gives international rules and regulations for all the banks, which mainly concentrates on reducing the risk and thus ensuring safety. This became strict in 2008 by passing Basel III due to financial crises all over the world.