- Ethereum can support fragile cashless payment systems.
- Nordic countries retreat from cashless due to risks.
Vitalik Buterin, Ethereum’s co-founder, called on the blockchain community to strengthen Ethereum’s ability to handle cashless transactions and provide better privacy. Buterin answered a thread about Scandinavian countries backing away from cashlessness in a May 25, 2024 X post, blaming their centralized system for the weaknesses. He pointed out that Ethereum could act as a secure backup for carrying out digital payments.
Security concerns have led Sweden and Norway to put on hold their plans for becoming completely cashless. On October 30, 2024, The Guardian reported that attacks on the internet and other hybrid tactics by groups supporting Russia led to this decision. Now, the Nordic nations see cash as an important alternative when digital solutions do not work.
Buterin pointed out that Ethereum should tackle these security issues. “We have the ability to create robust solutions, yet these depend on safe hardware or steps taken later to prevent double-spending,” he said in a post on X. His words point to Ethereum’s ability to help struggling digital payment systems.
The role of Ethereum in supporting digital payment stability
The Nordic countries are stepping away from cashless systems due to their dependence on a single digital system. According to the Guardian, Sweden’s entire payment network could be halted by a targeted attack during disruptions in electricity or communication. Because of this, people are once again paying more attention to keeping cash as a safety net.
Buterin stated in his X thread that the decentralized nature of Ethereum was the answer. Because Ethereum is not centralized, it is able to process transactions reliably, ensuring cashless societies are protected. The work of individuals like as Rohan Grey, who investigate the impact that blockchain technology has on digital currency, were brought to the attention of lawmaker Vara.
When it comes to blockchain settlements, there is still an issue with duplicate spending. Investopedia’s web result explains that Bitcoin makes it impossible for someone to spend a coin twice by using timestamps, proof-of-work and a network of nodes. Buterin mentioned that, like Bitcoin, Ethereum also needs either strong hardware or rules to ensure transactions are secure.
Privacy matters a lot in Ethereum as well. According to a response on Ethereum Stack Exchange, zero-knowledge blockchains like zkSync do not provide full privacy, as their data is still public. Buterin pointed out that Ethereum needs better privacy features to stand as a reliable option to cash when there is a crisis.
Creating a Strong and Stable Blockchain Future
Buerin’s suggestion is in line with the wider discussions happening on the X thread. In his reply to Buterin, David Manheim wanted to know how private transfers without relying on the internet were developing. Buterin pointed out that possible solutions are restricted by issues like the need for hardware that can be trusted.
Nordic nations are currently investigating ways to combine digital and cash transactions. Sweden is looking into introducing an “e-krona” as a digital version of cash, but the government must decide on it. Ethereum may be part of this model because it offers a secure and decentralized way to handle digital transactions.
According to the Bank for International Settlements, Singapore and others are examining blockchain for digital currency purposes. Ethereum’s decentralized setup might solve issues found in cashless systems everywhere.
Privacy and the ability to use these services are still issues. Writing for Money on the Left, Rohan Grey discusses the importance of making digital money systems user-friendly. Buterin’s objective with Ethereum is to simplify the blockchain technology to the point where it may be used by individuals living in cashless society.
It is easy to see how Ethereum can help with weak digital systems. Buterin’s support, inspired by the Nordic model, makes Ethereum an important part of the future of tough, decentralized payment systems
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