Blockchain technology has not yet reached a sufficient level of maturity and needs improvements, according to Olga Skorobogatova, first deputy governor of Russia’s central bank.
Speaking at the St. Petersburg International Economic Forum 2018 (SPIEF 2018), which drew over 17,000 attendees from 143 countries, she stressed that blockchain was not used at a large scale except for Bitcoin and other cryptocurrencies.
“There is still no large industrial solution for distributed ledgers except for Bitcoin and some cryptocurrencies. This is not only due to the fact that the technology is not mature enough – which, and by the way, is the case – but also that it still requires a lot of improvements, both from the point of view of security and scalability,” Skorobogatova noted during discussions at SPIEF.
According to the Bank of Russia official, blockchain applications can be divided into two categories based on use cases. The first centers on distributed settlement systems, such as Ripple and R3’s Corda, while the second category revolves around smart contract features, such as Ethereum or Hyperledger.
Skorobogatova added that the lack of application of blockchain on a large scale is also due to the fact that entrepreneurs have not yet understood the technology’s value.
“Technology for technology's sake is pointless. For example, speaking about business use cases, if electronic bills and electronic letters of credit are clear to us, then, as I said, the transfer of calculations from online processing to Ripple and Corda is not very clear as of today,” she said, adding that we should see more use cases this year and this will help the technology go mainstream.
Last year, the head of the Bank of Russia, Elvira Nabiullina, objected to a proposal for legalizing cryptocurrencies in Russia.
This article appeared first on Cryptovest
