Ethereum co-founder Vitalik Buterin believes that if decentralized networks become more robust and private, they can support national efforts to reduce trust in cash.
In a May 25th after On X, Buterin commented on recent developments in Sweden and Norway, where authorities reconsider their almost total shift to digital payments.
Both countries have led the global trend in the gradual concern about the emergence of security for a change in the approach.
According to reports, the governments recommend citizens to continue to use cash as a form of national readiness. The recommendation follows growing concerns about cyber warfare and the potential expansion of the Russia-Ukraine conflict.
Civil servants claim that in the case of network disruptions or hostile attacks, cash remains the most accessible and resilient payment method.
The shift indicates a broader tension between innovation and stability in national financial systems. Although digital payments offer speed and convenience, recent events Suthey’ReHey are not yet a complete replacement for physical money in risky scenarios.
Ethereum offers promise
According to Buterin, the centralized digital systems were too vulnerable to resist geopolitical shocks, which always made money ‘necessary’.
According to him:
“Nordics are recovering the initiative of Cashless Society because their centralized implementation of the concept is too vulnerable. Cash appears to be necessary as a backup.”
Buterin sees these worries as an opening for Ethereum to step in, but only if the network evolves.
He suggested that Ethereum could offer a more sustainable alternative if it could work safely, private and independently of some failure points.
Buterin said:
“Ethereum must be resilient enough and private enough to be able to play this kind of role in a credible way.”
He emphasized that Ethereum should improve considerably before such a critical infrastructure is supported. This includes improving privacy protection and increasing the resilience of the system by decentralizing more.
The network is already making important changes by introducing new functions that improve functionality. However, Ethereum is still confronted with technical barriers, such as scalability problems and transaction costs, which can hinder their approval in such emergency situations.
