Ethereum co-founder Vitalik Buterin believes that if decentralized networks become more robust and private, they can support national efforts to reduce their reliance on cash.
In a May 25th post on X, Buterin commented on recent developments in Sweden and Norway. Authorities are rethinking the near-change towards digital payments.
Both countries are leading a global trend to abolish physical cash, but new security concerns are forcing a change in approach.
The report says the government is urging its citizens to continue using cash as a form of citizen preparation. The recommendation follows growing concerns about the cyberwar and the potential expansion of the Russian-Ukurein conflict.
Officials argue that cash remains the most accessible and resilient payment method in the event of network failure or hostile attacks.
This shift highlights the broader tension between innovation and stability in the national financial system. Digital payments offer speed and convenience, but the recent event Suthey’rehey is not a perfect replacement for physical money in high-risk scenarios.
Ethereum offers promises
In Buterin’s view, centralized digital systems were too vulnerable to withstand geopolitical shocks, making cash “needed”.
According to him:
“The Nordic is walking through the Cashless Association’s initiative because the centralized implementation of the concept is so vulnerable. It turns out that cash is needed as a backup.”
Buterin views these concerns as openings for Ethereum to intervene only if the network evolves.
He suggested that Ethereum could offer a more durable alternative if it could operate safely, personally and independently with a single point of failure.
Butarin said:
“Ethereum needs to be sufficient and private enough to be able to play this kind of role in a reliable way.”
He emphasized that Ethereum needs to improve significantly before it can support such critical infrastructure. This includes enhancing privacy protection and increasing system resilience through more decentralization.
Already, the network has made major changes by introducing new features that improve functionality. However, Ethereum still faces technical barriers, such as scalability issues and transaction costs, which could potentially be adopted in such emergencies.