Cuadrado, 26, has been one of the stars of the World Cup this summer, with his performances for Colombia drawing a host of outside interest.
Cuadrado, who scored 15 times for Fiorentina last season, would be a direct rival to Alves in the Barcelona XI if the move occurred, but Alves has welcomed Barca's interest.
"If we can recruit him, then I encourage it. Always, the big players are welcome," he told Marca.
"It doesn't bother me. On the contrary, he is a great player, young, and has had excellent performances with his club and the Colombian national team.
"Of course the club is looking for quality in order to compete. It gives me motivation."
Alves has been strongly linked with a move away from the Camp Nou this summer.