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Russia’s Largest Bank Head: Cryptocurrencies Have Huge Potential

· 24 Oct 2018 in Crypto News
Carlos is an international relations' analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

Herman Gref, the current CEO of Russia’s largest bank, Sberbank, believes virtual currencies have huge future potential. Mr. Gref, formerly the Russian minister of economics, thinks that in the coming decades, cryptocurrencies could transform societies. However, he has also explained that virtual currencies will need at least five years to be mature. The information has been released by the local news outlet RIA.

Sberbank CEO Positive on Virtual Currencies

During a forum about financial technology, Mr. Gref talked about virtual currencies. He mentioned that nation-states will be restricting virtual currencies in the near future.

“Do I see a great future in cryptocurrency? Not yet seen, the state will not give up its centralized role, will not allow cryptocurrency,” he mentioned at the event.

Although he was sincere about what he thinks that governments will do, he expressed optimism about virtual currencies. He said that in ten years cryptocurrencies could play an important role. Before that timespan, he does not believe states would adopt a centralized money supply model.

Additionally, Gref said that crypto potential is huge but the technology is not still ready to be used. In order to be developed, it will require five more years. He has also commented that distributed ledger technology can have a very important effect in ‘business and society.’

On the matter, he commented:

“Improving technology will give a huge value for business and society. Now the hype has ended and a more balanced consideration and evaluation of this technology has begun. We are developing and are experimenting with technology. I see that, in particular, in the financial sector and in public administration this technology has great prospects.”

Finally, he said that a slow down of speculation around cryptocurrencies is also positive. This would allow for the fundamental development of these assets to start. Additionally, he stated that this is important for the developing of the technology in the long term.

This shows that not all the bankers and financial institutions are against virtual currencies. In this case, Sberbank and its CEO are open towards them and how they can improve the society end economy. Other banks such as Santander and JP Morgan are working with blockchain technology to improve their services.

Back in May, Sberbank completed the first blockchain-based commercial bond transaction in Russia. The transaction was completed in a partnership with MTS and the National Settlement Depository (NSD).

 

Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.

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