Buterin Reacts as Sweden Rethinks Cashless Society

Ethereum co-founder Vitalik Buterin has weighed in on Sweden’s renewed interest in physical cash, pointing out the risks of centralization in digital finance and advocating for Ethereum’s role in resilient systems.

Sweden Urges Citizens to Keep Cash Amid Digital Uncertainty

Once considered a global leader in eliminating cash, Sweden is now revisiting its cashless ambitions. With rising concerns over cyberattacks, civil preparedness, and system failures, Swedish officials are urging the public to hold emergency cash reserves.

The shift in policy reflects growing awareness that entirely digital financial systems might lack the resilience required during national emergencies.

Buterin Says Ethereum Could Serve as Backup Infrastructure

Commenting on the change, Vitalik Buterin shared on X that the Nordic countries are stepping back from fully cashless systems due to the inherent vulnerabilities of centralized infrastructure.

He cited The Guardian’s March 16 report, emphasizing the necessity of having offline alternatives. “Cash turns out necessary as a backup,” Buterin said, pointing to the need for decentralized options during times of instability.

Can Ethereum Deliver Secure Offline Payments?

While most daily transactions in Sweden are now digital, the government recently advised citizens to store a week’s worth of cash at home. The move highlights the need for reliable financial infrastructure during crises, something Buterin believes Ethereum could provide.

For Ethereum to act as a backup financial tool, it must offer privacy and resilience. When asked about fully offline private crypto transfers, Buterin said the technology exists but isn’t quite ready for full deployment without trusted hardware or enforcement against double-spending.

Crypto Coexistence with Fiat Likely, Says Industry CEO

Despite growing interest in decentralized payment platforms, Petr Kozyakov, CEO of crypto payments company Mercuryo, doesn’t foresee crypto fully replacing traditional money.

In an interview with Cointelegraph, Kozyakov said crypto adoption is increasing, but it’s more likely that digital currencies and fiat will function side-by-side. He emphasized that consumers will continue to use crypto when it’s more convenient or efficient.