Bitcoin Profit: Sberbank financed SBT fund recognizes blockchain potential

16. November 2018

The SBT Venture Capital Fund, financed by Sberbank with 100 million US dollars, has shown great interest in Bitcoin and the Blockchain technology. Sberbank is currently Russia’s largest bank.

Bitcoin profit as an illegal act

The statement of SBT partner Mircea Mihaescu on stands in stark contrast to the statements of various Russian government representatives who want to punish the use of Bitcoin profit as an illegal act. Read more about it in this review about Bitcoin profit.

In an interview, Mihaescu was largely hostile to legislation and regulation and said that laws often lag behind innovations and as such should not be seen as a central concern of global entrepreneurs.

Mihaescu also said that the SBT is interested in investments that have an impact on the financial sector as a whole:

„We have our own interests. We are not interested in equity funds or the purchase of Bitcoins, etc. We are more interested in the fundamental changes that affect the whole financial sector.

Mihaescu believes that the Bitcoin protocol as an innovation has such potential.

„The current banking system with more than 10,000 banks could be replaced by the blockchain,“ says Mihaescu.

The SBT Fund was launched in 2012 with the help of a $100 million Sberbank financial injection. At that time it was said that this figure could increase sevenfold within the first three years. The SBT fund has attracted interest from a number of industries, including big data, cloud computing, mobile payment and home banking.

Mining criticism despite Bitcoin profit

Although Mihaescu was mostly positive about Bitcoin profit technology, the SBT Fund is also interested in investing in Bitcoin profit alternatives.

For example, he spoke out against the concept of Bitcoin mining, i.e. the process of generating digital Bitcoins. Mihaescu was afraid, however, that the government’s ban on Bitcoin was the right way to protect himself from the influence of the new technology.

„The prevailing opinion about Bitcoin is that the currency is mainly used by criminals and drug dealers. But do you know what currency they use? Cash! Interestingly, this currency is strangely not banned,“ says Mihaescu.

Bitcoin friendly portfolio
The government representatives continue to assume that the Bitcoin ban will come into force in the spring of this year. The spring was already set in the past year as Deadline for the Bitcoin prohibition by the Ministry of Finance.

Since the first announcement of the ban, however, many entrepreneurs have spoken out in favour of more favourable legislation and various financial organisations such as the Bank of Russia have also expressed themselves increasingly positively.

SBT’s portfolio includes a large number of Bitcoin friendly startups. IdentityMind and the social trading platform eToro are only a small part of the companies that also serve the Bitcoin market.