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Founder and Chairman of Alibaba Jack Ma recently spoke about his views on cryptocurrencies, declaring Bitcoin an asset bubble and saying that digital currency prices are based on speculations. Ma made these remarks after launching a blockchain-based money transfer service. The new venture will remit cash between Hong Kong and the Philippines.

Ma Brings Blockchain to Global Remittances

Jack Ma’s Ant Financial has collaborated with Philippine-based Globe Telecom to launch the new service. The service will facilitate cross-border remittances between Hong Kong and the Philippines. Hong Kong has a large Filipino population, mostly employed as workers and housekeepers, who send money to their home country regularly. The new blockchain-based service could help them do so securely at a lesser cost.

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After the launch, Ma talked to reporters and reinstated his faith in blockchain technology, but dismissed Bitcoin as a potential bubble. He said:

“Blockchain technology could change our world more than people imagine. Bitcoin, however, could be a bubble.”

Falling Bitcoin Prices and Traditional Finance Problems

Bitcoin slipped below the $6,000 mark on Sunday, landing at $5,787 as disappointed investors lose confidence in the currency. These global currencies are currently under tough regulatory scrutiny, which could be keeping investors and traders away from the market. Moreover, the market hasn’t matured enough for many institutional investors who could bring a large influx of funds into the industry.

The financial industry has some issues, which can be seen in Ma’s comments. While shrugging off questions about Bitcoin’s legitimacy, he also criticized the traditional financing system. He said that overcharging is rampant among financial institutions.

Said the billionaire:

“Traditional financial institutions serve 20 percent of people and make 80 percent of profits. New financial institutions should service 80 percent of people, and make 20 percent of profit.”

Ant Financial is an Alibaba affiliate backed by top names in global finance and investment. The company is engaged in blockchain development. However, this is the first time the company has started to use its solutions in the remittance business.

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