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Sberbank CEO Predicts the Decline of Crypto Industry

Apparently, cryptocurrencies will not continue to grow over the next ten years, according to German Gref, the CEO of legendary banking institution Sberbank, which is owned by the Russian state. Gref shared his negative opinion of the industry as he was attending FINOPOLIS 2018 in Sochi.

 



Attempting to explain his bleak outlook on the future, the CEO stated that many countries are still not enthusiastic about adopting cryptocurrencies and letting go of the current centralized structures for money supply.  He thinks this would potentially be a major reason for why cryptocurrencies will be unable to continue to flourish over the next decade, at the very least.

No Room for Change

No state is willing to let go of its current centralized power to make way for cryptocurrencies as a replacement. Given the decentralized nature of digital currencies, this would be a major requirement. However, Gref mentioned he has no problem with models that are distributed in multiple areas and that includes money supply.

In the meantime, he expressed how positively he feels about the blockchain tech currently being undertake as it has huge potential. Despite it being worthy technology for development and distribution, he considers it not ready for adoption in real-life scenarios as the concept still requires a lot of work; it may reach maturity in three or five years. The widespread development of cryptocurrencies will benefit society as a whole and how businesses operate.

Blockchain tech has generally been appreciated separately from digital currencies, which is why many can look upon it positively, including governmental organizations, the medical industry, and many other sectors.

New Ways into the Future

It seems the original hype around cryptocurrencies is dying out and that opens a way for a much more laid-back approach to them. Sberbank is currently working on blockchain experiments that will take into account governments and the entire financial sector.

In spite of his critical point of view regarding the future, Gref is opposed to a complete crypto ban because it will stand in the way of the technology’s development and severely harm work already done by many organizations who have built distributed ledger networks. Having blockchain developed is not seen as a costly endeavor because it basically finances itself. He emphasizes that a balance needs to be reached between destroying the technology and feeding speculation.

Earlier this year, Gref attacked cryptocurrencies claiming they were immature and are overvalued, only being popularized by people looking to make easy money.

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