Sberbank CEO Believes Blockchain Won’t Be Ready For The World For “Three To Five Years”

While enthusiasts love to praise blockchain and all of its potential, it’s no question that the technology still has a ways to go before mainstream adoption. However, it may take a little bit longer than some might expect; or at least, that’s what Herman Gref, CEO of the Russian-based financial service provider, Sberbank, believes.

A Rational Approach

As reported by a local publication, Gref believes the same thing most blockchain enthusiasts do: that the technology will revolutionize the way we live, especially in the financial space.

The CEO revealed his thoughts at a fintech conference in Sochi, Finopolis Forum, on October 18th, run by the Bank of Russia.

While Gref believes in the technology, he doesn’t think decentralized ledgers will take the world by storm for at least a couple of years:

“The technology is not ready now. When will it be ready? In my opinion, three to five years. If you ask me in five years, maybe I can say something more distinct about its place, but the potential is huge.”

Gref also believes that cryptocurrencies will take even longer to settle, claiming up to 10 years before governments and the general public will take hold. He reasons that current governments will want to hold onto their fiat counterparts for as long as possible.

Otherwise, Gref states that 2018’s bear market provided us a “balanced consideration and evaluation of this technology.” Last year’s hype brought awareness to cryptocurrencies. However, now that it has died down, developers can innovate on and even perfect blockchain technology.

Suggested Reading: Learn more about Bitcoin in our beginner’s guide.

Ultimately, Gref touched on regulation and how it would affect the market. Like many, he shares the opinion that banning digital assets could prevent innovation and lead to naysayers. A positive approach is the best way to be.

Gref’s opinion is rational—not leaning too hard in the negative or positive space. Sure, the CEO sees the potential in decentralized technology, but he recognizes the time it will take for blockchain to become widely accepted. Blockchain is still a new technology, and jumping the gun on it could lead to dire consequences.

Under Gref, Sberbank is working on blockchain implementation to provide better services to their customers.