‘Crypto future not bright until next decade’ Sberbank chief warns

October 19, 2018
Chris Wheal

The outlook for digital currencies will not be bright until the next decade, according to the head of Russian state-owned banking giant Sberbank.

German Gref, expressed his views this week in a speech at the Forum of Financial Innovation Technologies (Finopolis).

As Cryptovest reports, Gref’s gloomy forecasts,  centred on the premise that states are not willing to part with the centralized system of money supply, which spells a dead end for cryptocurrencies, at least over a 10-year horizon.

“No state will concede its centralized power and let cryptocurrency take its place though I am all for distributed models in different areas, including money supply,” Gref argued.

Despite his bearish stance on cryptocurrencies,  Gref opposes a total cryptocurrency ban as it might hamper the development of the underlying technology and damage a lot of companies’ work with distributed ledger systems.

Sberbank is experimenting with blockchain. In general, it views it as being beneficial to the financial sector

In general  he is very positive about the underlying blockchain technology and its massive potential, saying it is worth developing and deploying.

However, this he sees as being in an immature position right now.

“This concept is still not ready. When will it become mature? Probably in 3-5 years… Anyway, it looks very promising as the philosophy behind this concept drastically changes ways we do things. The development of this technology can bring value both to business and the society,” Gref opined.

Sberbank is experimenting with blockchain, which the bank sees as highly promising both for the financial sector and governance.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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