Ethereum Must Maintain Sensitivity and Stability to Compete with Cash

Ethereum Must Maintain "Sensitivity and Stability" to Compete with Cash

Ethereum co-founder Vitalik Buterin has emphasized the importance of Ethereum maintaining both sensitivity and stability if it is to serve as a viable alternative to cash.

Referencing a recently published report, Buterin noted that Nordic countries such as Sweden and Norway, once seen as pioneers of cashless societies, are now reverting to cash due to the vulnerabilities of centralized digital payment systems.

Sweden, for instance, had long led the global trend toward a cashless society. However, its government has recently begun encouraging citizens to use cash more frequently, citing the need for resilience against cyberattacks and technical disruptions. Similarly, Norway has introduced penalties for retail stores that refuse to accept cash, signaling a renewed commitment to physical currency access.

Amid this shift, Buterin argued that Ethereum must enhance its responsiveness and reliability to remain competitive. He warned that without these attributes, decentralized networks like Ethereum may struggle to fill the role of cash in societies increasingly wary of centralized digital infrastructure.

Still, Buterin acknowledged that whether cryptocurrencies can truly replace cash remains uncertain. He stressed the need for further observation, testing, and adaptation, noting that Ethereum will need to evolve continuously in response to changing global payment dynamics.