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VEB: the era of paper money is coming to an end

Vnesheconombank has successfully developed a project-financing programme, through which domestic investment in Russia every year will grow and by 2020 will amount to 500 billion rubles.

Based on such support of the Bank, a regions, departments and government agencies began to move on the technology of the blockchain.

«The era of paper money is coming to an end,» — said in an interview with the newspaper «Izvestia» the head of Vnesheconombank, Sergey Gorkov, — «crypto-currencies will come to replace them in just a generation.»

Unlike many popular opinions and statements, the head of VEB does not consider the whole cryptocurrency bubble.

«The bubble can be considered a specific cryptocurrency, such as bitcoin, which is unsecured and is overrated. From this currency it is impossible to expect continuous growth. Bitcoin was a bubble effect, and at the turn of 2017-2018, he was blown away».

In the near future, the popularity of bitcoin will fade, suggests the head of VEB. Replace the new electronic money:

«»Bit of something», maybe even «bigtrouble». The name will change, but still it will be electronic money», — he said.

But do not hope that the process of replacing paper money will be quick and painless. You need to create the necessary conditions. For example, «the level of penetration of smartphones and other electronic devices should be close to 100%,»-said Sergey Gorkov. And this is just one of the necessary conditions.

It should be recalled positive reviews of the management of VEB, made by the Finance Ministry and Central Bank bill currencies, through which they will gain legitimacy.

«The Central Bank and the Finance Ministry have taken a very wise position. They did not make rapid decisions and took a pause for reflection. It is vital to identify clear concepts that exclude the slightest discrepancies», — said Sergey Gorkov.

On the question of «Izvestia» about the specific actions Gorkov said

«We supported eight blockchain projects. The first and the biggest is Rossreestra. There are projects with Rospatent and the seller. Interesting project with the Ministry of health Novgorod region for prescription drugs. The Chechen Republic is ready to transfer the property on the blockchain. Such an initiative appealed and the Kaliningrad region. Preparing a pilot project with the Ministry of Finance for public procurement, a number of projects in development».

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