Russia’s Central Bank says Blockchain is not mature enough

An employee of the institution said that technology needs to improve in security and scalability

Source: CoinTelegraph

Last weekend, the deputy governor of the Bank of Russia, Olga Skorobogatova attended the St. Petersburg International Economic Forum, and made several comments on Blockchain. Olga said that decentralized technology is still to “mature” and has not been used on an industrial scale except with cryptocurrencies.

According to a deputy governor, the key issues are security and scalability, so that companies can become public and competent. Skorobogatova divided blockchain applications into two main use cases. First, blockchain systems that have a data distribution network, such as Rope and Ripple, that can be used to process bank payments. Second, the blockchain that have a smart contract functionality, such as Ethereum and Hyperledger.

“Technology for the sake of technology is useless,” said Skorobogatova, adding that 2018 would be the year in which Russia and the international community would come to a “pragmatic understanding” of the purposes for which the blockchain is beneficial.

Last week, two news stories on cryptocurrencies and blockchain were released: Russia’s first officially regulated ICO and also Parliament’s approval of reading the first of three new laws regulating the crypto and blockchain industries that define cryptocurrencies and tokens encryption as a property.