Ethereum co-founder Vitalik Buterin thinks ETH might be a viable various to makes an attempt by Sweden and Norway to make their societies cashless. The international locations pulled again just lately after discovering that centralized cost programs collapse when bodily infrastructures fail.
However within the crypto world, this transfer prompted a unique response: The concept decentralized programs might tackle the function.
“Nordics are strolling again the cashless society initiative as a result of their centralized implementation of the idea is just too fragile,” Ethereum co-founder Vitalik Buterin wrote on X, responding to a Guardian report that each international locations now require residents to keep up money reserves.
Nordics are strolling again the cashless society initiative as a result of their centralized implementation of the idea is just too fragile. Money seems needed as a backup.
Ethereum must be resilient sufficient, and personal sufficient, to have the ability to credibly play this type of function.… pic.twitter.com/eFVYT254qN
— vitalik.eth (@VitalikButerin) Could 25, 2025
Sweden had lowered money utilization to simply 1% of transactions whereas Norway’s Vipps app dominated commerce, however Russia’s invasion of Ukraine has uncovered important vulnerabilities when infrastructure assaults might paralyze total cost networks.
Buterin echoed the sentiment, saying: “Money seems needed as a backup.”
Taking a look at his personal backyard, Buterin posed a measured remark on the case of Sweden and Norway.
“Ethereum must be resilient sufficient, and personal sufficient, to have the ability to credibly play this type of function,” he wrote.
Money versus code
Responding to Decrypt’s inquiries on Buterin’s statements, Sam MacPherson, CEO of decentralized finance protocol improvement agency Phoenix Labs, disagrees with the Ethereum co-founder’s evaluation.
“Ethereum is already there. It’s designed to be as resilient to hostile actors as potential,” MacPherson mentioned, pointing to DeFi protocols managing billions with out main failures.
Such decentralized programs are “designed to be as safe as potential from the bottom up,” he claimed.
Nonetheless, offline performance ranks as one of many main challenges if Ethereum had been to tackle the function of offering a extra resilient various to money. With out electrical energy or web, Ethereum would not work by itself.
Zero-knowledge proofs, in the meantime, might theoretically allow offline funds, as Buterin famous in responses, although these stay experimental.
“We mainly know learn how to do it, however with the limitation that any resolution relies on trusted {hardware},” Buterin mentioned.
One other alternative might be opened with stablecoins, that are pegged to fiat currencies such because the U.S. greenback.
“Stablecoins are a precise resolution to this situation,” Anthony Anzalone, founding father of walletless blockchain platform XION, informed Decrypt. Stablecoins have “exploded in utilization and adoption” as a result of they are not “reliant on one centralized occasion,” he defined.
@rohangrey has carried out lots of deep thought on this course.
We mainly know learn how to do it, however with the limitation that any resolution relies on trusted {hardware} and/or publish hoc enforcement towards double-spenders.
— vitalik.eth (@VitalikButerin) Could 25, 2025
Nations with “unstable governments and currencies” are probably the most obvious use case and context, Anzalone mentioned.
But, stablecoins face their very own questions on resilience, particularly when it comes to privateness.
“Whereas there are a number of privateness protocols with the potential to make Ethereum non-public sufficient to behave as a significant various to money, resilience is one other challenge altogether,” Harrie Bickle, documentation lead at AI-powered orchestration layer NodeOps, informed Decrypt.
Within the face of disaster situations resembling those who Sweden and Norway now face, Ethereum might present its resilience by not strictly requiring customers to have entry “to electrical energy, safe working programs, and unhackable Web3 wallets,” Bickle added, declaring flaws in how Ethereum might stay sensible in such instances.
“We should journey a great distance down an, as but undeclared, roadmap earlier than Ethereum might be resilient sufficient to switch money transactions,” Bickle mentioned.
Edited by Stacy Elliott.

