The term “Ariary” may cause some confusion, as it can refer to two different concepts:
- The “Ariary” (Ariary), the legal tender of Madagascar: This is a real, existing legal tender with the ISO 4217 code MGA, and it is one of the few non-decimal currencies in the world.
- A digital currency or blockchain project associated with the Alibaba Group: This could include a virtual currency launched by the Alibaba Group itself or applications related to Alibaba’s blockchain technology.
This article will primarily explore the “Ali Coin” associated with the Alibaba Group and its future prospects.
Alibaba Group and “Alibicoin”
Alibaba Group previously launched a virtual currency called “AlibabaCoins.” This virtual currency was designed to streamline online transaction processes, enhance the user payment experience, and could be used to purchase goods and services within the Alibaba ecosystem, such as products on platforms like Taobao and Tmall. The value of AlibabaCoins fluctuates based on market supply and demand and is not fixed.
It is worth noting that in 2018, Alibaba Group sued a Dubai-based company, the “Alibabacoin Foundation,” for trademark infringement and has repeatedly stated that it “does not wish to enter the cryptocurrency market.” Despite this, Alibaba Group’s strategic initiatives in the field of blockchain technology have been both active and extensive.
Alibaba’s Blockchain Initiatives and Applications
Alibaba Group recognized the importance of blockchain technology early on.Jack Ma once stated: “I am personally very bullish on blockchain. Alibaba must embrace blockchain; we have been conducting blockchain research for several years now. An Alibaba without blockchain would die.” As of the first quarter of 2019, Alibaba ranked first among Chinese companies with a cumulative total of 186 blockchain patents.
Alibaba’s blockchain applications are primarily focused on the following areas:
- Cross-border Payments and Remittances: Alipay and G Cash previously announced the launch of the first blockchain-based cross-border digital wallet remittance service, aimed at providing fast, secure, convenient, transparent, and low-cost cross-border transfer services. Additionally, Alibaba’s collaboration with CBP Digital Currency is viewed as a significant move in the cross-border payments sector. Recently, reports have emerged that companies such as JD.com and Alibaba may issue stablecoins in Hong Kong for use in cross-border e-commerce and payment settlement in overseas markets, with the goal of addressing pain points in cross-border payment settlement, enabling settlements within seconds, and reducing costs.
- Product Traceability and Supply Chain: Alibaba has integrated blockchain technology into its cross-border logistics operations and launched a blockchain-based authenticity verification feature for Tmall Global and the Tmall Luxury Pavilion. Alibaba has also signed a mutual trust framework agreement with partners such as PwC and Fonterra for global cross-border food traceability.
- Charity and Public Welfare: Ant Financial, in collaboration with public welfare organizations such as the Red Cross Society of China, has launched a blockchain pilot project that allows donors to track the entire flow of their donations. All charitable donation projects on Alipay also utilize Ant Blockchain technology to ensure transparency in the platform’s donation data.
- Healthcare: AliHealth previously launched a pilot project for a blockchain-based medical consortium in Changzhou.
- Enterprise-Grade Blockchain-as-a-Service (BaaS): Alibaba Cloud provides Blockchain-as-a-Service (BaaS), supporting Hyperledger Fabric, Ant Financial’s proprietary blockchain technology, and Enterprise Ethereum Quorum. This service is designed to help enterprises rapidly build secure and stable blockchain environments while simplifying deployment, operations, and development processes. The Ant Blockchain team provides technical support for Alibaba Cloud BaaS.
- Metaverse and Web3: Alibaba Cloud has partnered with the Layer-1 blockchain Avalanche to enable enterprises within the Alibaba ecosystem to create virtual worlds on the blockchain. It has launched a metaverse project deployment platform called Cloudverse to help enterprises enter the Web3 virtual world more quickly and cost-effectively.
Future Prospects
Alibaba Group’s investments and explorations in the blockchain and digital economy sectors signal its significant role in the future digital world. Its development prospects can be viewed from the following aspects:
- Technological Innovation and Deeper Application: Alibaba continues to conduct R&D in blockchain underlying technologies, smart contracts, and privacy protection, applying these advancements to more business scenarios—such as integrating them with AI technology. Driven by demand for AI and its MaaS (Model-as-a-Service) business, Alibaba Cloud is expected to accelerate its annual growth rate and is likely to exceed market expectations.
- Improved Efficiency in Cross-Border Trade and Finance: Through blockchain technology, Alibaba is poised to further optimize services such as cross-border payments and supply chain finance, reducing transaction costs and improving efficiency, thereby strengthening its competitiveness in international trade.
- Building the Web3 Ecosystem: Collaborations with blockchain projects such as Avalanche indicate that Alibaba is actively expanding into the Web3 and metaverse spaces, providing enterprises with gateways to the virtual world and related services—a move that could create new growth opportunities.
- Development Amid Compliance and Regulation: Against the backdrop of increasingly stringent regulations on digital currencies and blockchain across various countries, Alibaba’s blockchain projects will place greater emphasis on compliance. For example, the pilot program to issue stablecoins in Hong Kong will leverage the strengths of its e-commerce platform to address pain points in cross-border payment settlement.
In summary, although Alibaba Group maintains a cautious stance toward the “cryptocurrency” market, its in-depth engagement in blockchain technology and related digital economy sectors—combined with the integration of cutting-edge technologies such as AI—will provide strong momentum and vast opportunities for its future development.
