The Brazil international believes that while Manuel Pellegrini's side is not an ideal opponent, City would also have preferred to avoid the Catalans in the last 16.
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This season is the first of those in which the Catalan club is not the favorite to win the competition, while local media and even some of the players admitted prior to the draw for the last 16 that they had hoped to avoid City.
"That's the beautiful thing about football - it throws up situations like these," Alves told Goal. "It gives you the chance to show what you're capable of.
"And while some didn't want to play against City, I am sure that many at City didn't want to face Barca. So we're even on that. Now we have to make sure things go our way on the pitch."
The 30-year-old, who was recently voted by fellow professionals into the FIFPro World XI for 2013, says Barca is up to the challenge.
"This team has won everything," he added. "We have won so much. Football throws up great challenges like this and those who are not ready for them fall by the wayside.
"We are going to go out there to compete, to play our best, and whoever deserves to go through will make it to the next round. Let's hope it's us. In the Champions League, you always have to beat the best anyway."