Sweden (#Sweden ) and Norway (#Norway ) have abandoned their ambitions to create a cashless society due to centralized payment systems being vulnerable to collapse when infrastructure fails, according to The Guardian (31/5/2025). Ethereum co-founder Vitalik Buterin noted that decentralized systems like Ethereum and stablecoins could be alternatives, although there are still many technical challenges.
Event Context
Sweden once reduced cash transactions to 1% of total transactions, while Norway relies on the Vipps app. However, Russia's invasion of Ukraine (2022) exposed vulnerabilities: infrastructure attacks can paralyze centralized payment systems. Both countries require citizens to keep cash as a backup plan, marking a setback in the cashless initiative. Buterin commented on X: "Centralized systems are too fragile; cash is still necessary as a backup option."
Buterin proposed Ethereum as a decentralized solution but acknowledged the need to improve durability and privacy. Zero-knowledge proofs could support offline payments, but they depend on reliable hardware and are still being tested. Stablecoins, such as USDT and $USDC , are also seen as options due to their decentralization and being pegged to fiat currency (USD).
Expert Opinions
Support for Ethereum: Sam MacPherson (CEO of Phoenix Labs) believes Ethereum is durable enough, managing billions of USD through DeFi without major incidents. The system is designed to be resistant to malicious actors.
Skepticism: Harrie Bickle (NodeOps) emphasized that Ethereum lacks offline functionality and relies on electricity and the internet. To replace cash, $ETH needs a long-term roadmap to improve durability.
Potential stablecoin: Anthony Anzalone (XION) stated that stablecoins are the ideal solution, especially in countries with unstable governments or currencies. With a market cap of 138 billion USD for USDT (CoinMarketCap), stablecoins are booming thanks to their independence from a centralized party.
Impact on the crypto market
The event reinforces the role of blockchain in finance, with 1.8 million crypto users in Sweden and Norway (Statista, 2025). ETH rose 5% after Buterin's speech, while USDT and USDC remained stable at 1 USD (CoinMarketCap). TradingShot predicts ETH will reach 6,000 USD by Q4/2025, driven by DeFi and stablecoin demand. Chainalysis (2024) recorded 500 million USD in stablecoin transactions each quarter in Northern Europe, indicating significant potential. However, Glassnode warns of short-term volatility (10–15%) due to market sentiment.
Risks to consider
Technical limitations: Ethereum relies on the internet and electricity, making it unsuitable when infrastructure collapses.
Privacy: Stablecoins lack strong security protocols and are easily traceable.
Regulation: Policies in Sweden and Norway may restrict blockchain.
Hack risk: DeFi lost 1.2 billion USD due to hacks in 2024 (CertiK).
Risk Warning
Investing in Ethereum and stablecoins carries high risks due to price volatility, technical limitations, and hacks. Investors need to protect their wallets from malicious activities and conduct thorough research (DYOR). The information in this article is for reference only and is not investment advice. #anhbacong
