Buterin adds that a private and strong Ethereum is necessary for its use as an alternative cash when economies are volatile.
Nearly cashless Sweden and Norway now advise people to hold cash in case the central digital banking system fails.
Ethereum can only compete with cash if it resolves the privacy and failure problems linked to centralized systems.
Buterin pointed out that Ethereum will only become a good cash alternative if it values privacy and is resilient. His statement was made after Nordic countries displayed a growing interest in cash, thanks to rising worries about digital systems being controlled in one location.
Buterin referenced a new report that suggests Norway and Sweden want to balance their reliance on digital payments. Before, these countries were viewed as good examples of cashless societies. As many Swedes have started using Swish, the use of cash for daily purchases has fallen greatly.
Worries About Digital Risks Prompt Change
Making more transactions with cash is now being promoted by officials in Sweden and Norway. People are moving towards this approach because they feel that central digital platforms cannot stand up to crises such as cyberattacks. Swedish officials advise citizens to hold some cash handy for their own defense. Norway, however, charges fines to businesses that do not accept cash.
Buterin pointed out that Ethereum should have the ability to act like cash in today’s economic system. It therefore requires high-quality privacy protection and infrastructure toughness. If cryptocurrencies did not have these qualities, they might not be able to succeed against fiat currency in the real world.
Central systems are considered to be fragile.
Lately, it has become clear that modern nations can still struggle with building completely digital financial systems. If these cryptocurrencies are to function as a substitute, they need to solve the issues observed in centralized systems.
Buterin’s words further join the discussion about the future of finance. Because digital systems are being watched more closely, decentralized cryptocurrencies are taking on a new role. He believes Ethereum could become a secure and private digital way to pay, especially when other payment systems collapse.
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