The coloured belt system is in use in our organisation. My own view is that I found it to be a personal yardstick of the little victories along the path. In our grading system there are particular requirements in the curriculum for each test. Each belt just gives the person wearing it and those seeing it a sense of just what to expect from the wearer.BTW we have a red belt for absolute beginners, it gives them a badge, if you like, that tells their training partners to go easy and to expect a certain hesitancy and difference of control. Also it shows that the wearer may not be confident in breakfalls. Just means we have to take care of them.