Head of the Russian Ministry of Finance highly estimated the prospects of using blockchain but voiced out his skepticism about the future of cryptocurrencies.

In the near term, the world is unlikely to switch to payments in cryptocurrencies and people will prefer to pay with fiat, believes Anton Siluanov, Russian Finance Minister, joining the chorus of traditional financialists, making similar remarks about bitcoin.

"Is there any future for cryptocurrencies? It is difficult to say. I think that in any case, in the near future, payments in conventional currencies will still be a priority," Siluanov said.

According to him, unlike cryptocurrencies, the blockchain technology has great prospects for use in various areas of the economy.

"I do not think that bitcoin has any future. The future is behind blockchain. This is the so-called distributed ledger technology, which we are already beginning to use in our databases. I suppose that property registries can be stored in the blockchain," Siluanov said.

He also reiterated his support for state regulation of ICOs. According to him, it is necessary to combat fraud and Ponzi schemes, which can lead to the loss of depositors' funds.

"It [authorities] should watch and prevent possible debt crises, related to ICOs, their tokens, and cryptocurrencies. The bill on cryptocurrency regulation, which we have developed, is precisely aimed at ensuring that the cryptocurrency industry is also under state control. And there should not be any frauds, crooks who quickly attract money, and run away without any trace. Therefore, authorities should not stand aside. And this should be regulated."

Earlier, the Russian Ministry of Finance published a draft law on cryptocurrency regulation, which allows retail investors to invest in ICO projects no more than 500 thousand rubles a year ($9,000), limiting yearly investments in each ICO project with 50 thousand rubles ($900).