A senior official at Russia’s central bank has argued that time is still needed to understand the full benefits of blockchain technology.

Speaking in a discussion at the annual SPIEF conference in St. Petersburg, Bank of Russia deputy governor Olga Skorobogatova said blockchain requires improvements in terms of security and scalability, adding that it is still “not mature.”

According to a report translated from Russian, she said:

“In the world, there is still no big industrial solution on distributed ledgers, except for bitcoins … This is mainly due not to the fact that the technology is not mature enough.”

Skorobogatova added that the lack of large-scale adoption is partly due to the fact that enterprise executives do not yet understand the value of the technology.

Still, there are two different areas in which the technology that might be of benefit, she argued, where one is well suited for online operations such as electronic letters of credit – she provided the examples of Ripple and R3’s Corda platform – and the other involves working offline and with smart contracts – Ethereum and Hyperledger were cited in this case.

But technology for technology’s sake is “pointless,” the offical continued, predicting that, this year, the world will come to a greater understanding of blockchain and can then come to better anticipate how the technology will be of use within industrial-scale applications.

Despite Skorobogatova’s comments, the Bank of Russia has already built a regulatory platform that aims to make sales of cryptographic tokens, or initial coin offerings (ICOs), more transparent and secure for traditional investors. Just last week, it was announced that the country’s National Settlement Depository and Sberbank CIB, the bank’s corporate and investment banking arm, would carry out a trial ICO issuance over the platform.

The central bank is also mulling the use its ethereum-based Masterchain software to communicate financial messaging across the Eurasian Economic Union, as per an April report.

Bank of Russia building image via Shutterstock

Disclaimer Read More

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose. The information presented herein is accurate only as of its date, and it was not prepared by a research analyst or other investment professional. You should seek additional information regarding the merits and risks of investing in any cryptocurrency before deciding to purchase or sell any such instruments.