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Cryptocurrency cannot replace fiat money, says Sberbank’s CEO

The CEO of Sberbank in Russia went on to make another wild speculation recently about cryptocurrency. He commented that cryptocurrencies might not succeed in replacing the fiat-based economy and its centralized system anytime in the near future. He voiced his views on the topic to the media at the Eurasian Financial Conference in Kazakhstan. He also went on to talk about his belief in the fact that cryptocurrencies could not replace the conventional paying methods in the country. 

Talking about the role of cryptocurrency in the world of transactions, his exact words were, “I don’t think that the state is ready to yield its centralized role in the emission of fiat currency to some other decentralized institutions.” Another comment made by him to the reports at the international conference of Astana Finance Days clearly shed light on his incredulity at cryptocurrencies serving as a substitute to fiat money.   

The applications of cryptocurrencies are spreading like wildfire on a global scale, and with it, their significance is also being felt in the world. In addition to that, the popular demand for blockchain in the underdeveloped nations is causing quite a stir in the world, leading to a natural promotion of cryptocurrency. However, despite this hoopla about cryptocurrency, Gref’s entire mindset about the future of cryptocurrency is quite “realistic” and “prudent” because his speculations clearly support the reality of the world he lives in, rather than the “idealism” prompted by the world. In his own words, “Do I see a prospect of the global use of cryptocurrencies as an alternative to fiat money? I don’t see it and I said it many times.”

Having said that, the CEO also opined that despite his opinions on the subject, he has always spoken against the limitations outlined in the development of novel technologies like cryptocurrencies and blockchain. Meanwhile, many continue to speculate about the future and applications of cryptocurrency, but it still remains a somewhat mysterious entity.