Russian Central Bank Deputy Governor Says Blockchain Tech Not Yet 'Mature'

Russian Central Bank Deputy Governor Says Blockchain Tech Not Yet ‘Mature’

Olga Skorobogatova, Russian central bank’s first Deputy Governor, said that blockchain tech is still not ‘mature’ enough to be used on a large scale, and still requires many improvements, reports media outlet Prime, on May 26.

During a discussion at the SPIEF (St. Petersburg International Economic Forum), Skorobogatova said that blockchain technology is yet to be applied on an industrial-scale, with exception of cryptocurrencies, like bitcoin. She stressed that some major issues like scalability and security need to be dealt with, before using the blockchain tech on an industrial scale.

According to her, blockchain applications can be divided into two categories depending on their use. The first includes blockchain systems offering distributed settlement infrastructure. Ripple and Corda are examples of such system. On the other hand, the second category includes blockchain platforms like Hyperledger and Ethereum, offering smart contract functionality.

Skorobogatova said technology just for the sake of it, is pretty pointless. 2018 is going to be the year that Russia and the international community discovers purposes for which the nascent tech is beneficial, after which they can use it on an industrial-scale, she added.

However, this is not the first time Skorobogatova has spoken on the blockchain technology. In June last year, she called the blockchain technology ‘revolutionary’ and urged that it is something that needs to be invested in. But at the same time, she said it’s important to weigh its risks and learn how to manage them before using it in the mainstream financial sector. According to her estimation at the time, roughly about 7-10 years would be required before the industry can think of fully-controlled integration.

Earlier this week, the Russian parliament approved the first out of three readings of new laws regulating the Russian crypto industry. As per these laws, cryptocurrencies and tokens can be best described as ‘property’.

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