Vitalik Buterin “In a crisis, Ethereum presents financial alternative potential”

Vitalik Buterin emphasized the role of Cryptocurrency and Ethereum as an alternative in crisis situations (Source: Bloomberg)

Ethereum co-founder Vitalik Buterin stated that "Ethereum could be an alternative to complement centralized financial systems in crisis situations." He referred to Sweden's case, which led the way to a cashless society, pointing out how vulnerable centralized digital payment infrastructure can be in times of crisis.

Buterin said, "The reason Nordic countries are retracting the cashless society is that implementing it in a centralized way was too vulnerable," adding, "Cash is essential as a backup." The Swedish government recently recommended that citizens hold at least a week's worth of cash, citing the need to respond to cyber threats and emergencies.

He emphasized that "Ethereum should establish itself as a sufficiently strong and privacy-equipped decentralized financial infrastructure that can operate when centralized payment networks do not function."

However, Buterin acknowledged the technical limitations, stating that "while it is technically possible to implement a payment system that guarantees privacy in a completely offline state, it is difficult to fully realize without reliable hardware or post-execution against double spending in any case."

Meanwhile, Mercurio, a Cryptocurrency payment solution company, CEO Petr Kozlyakov also pointed out that "although Cryptocurrency payments are increasing, the possibility of completely replacing fiat currency is low." He said, "People choose to use Cryptocurrency based on practicality and convenience, not as an ideological alternative."

As the possibility of coexistence of Cryptocurrency and fiat currency is gaining more persuasion, Ethereum's role as a reliable payment infrastructure in crises is gradually gaining attention. Buterin's remarks are interpreted as suggesting that Cryptocurrency can function as a means of crisis response, not just an investment asset.