Vitalik Buterin emphasized the fragility of centralized digital payments and the potential of decentralized alternatives. The Ethereum co-founder commented on Sweden’s shift away from a cashless policy.
Nordics are walking back the cashless society initiative because their centralized implementation of the concept is too fragile. Cash turns out necessary as a backup.
Ethereum needs to be resilient enough, and private enough, to be able to credibly play this kind of role.… pic.twitter.com/eFVYT254qN
— vitalik.eth (@VitalikButerin) May 25, 2025
“Nordic countries are abandoning the ‘cashless society’ initiative because their centralized implementation of the concept is too fragile. Cash turns out necessary as a backup asset. Ethereum must be resilient enough and private enough to take on such a role,” wrote Buterin.
The cryptographer’s words suggest that the second-largest cryptocurrency by market capitalization can serve as a reliable alternative during periods of instability.
The Ethereum co-founder was responding to an article in The Guardian, which reported that amid increasing geopolitical uncertainty, official Stockholm is urging citizens to use cash more actively. The population was advised to regularly keep at least a week’s supply of cash in various denominations to “increase preparedness.”
Seven years after declaring such a course, only one in ten transactions in the country was conducted in cash, according to the publication.
Sweden is not the only Nordic country retreating from plans to transition to a cashless society. In 2024, Norway passed a law allowing retailers to be fined or penalized if they do not accept cash. The government also recommended that citizens “carry some physical notes due to the vulnerability of digital payment solutions to cyberattacks.”
When asked about the practical implementation of fully autonomous ZK-protected private transfers, Buterin responded that the technological know-how exists, but there are still limitations.
@rohangrey has done a lot of deep thought in this direction.
We basically know how to do it, but with the limitation that any solution depends on trusted hardware and/or post hoc enforcement against double-spenders.
— vitalik.eth (@VitalikButerin) May 25, 2025
“We know how to do it, but with the limitation that any solution depends on trusted hardware and/or post hoc enforcement against double-spenders,” he explained.
Back in 2025, Buterin mentioned that he would focus on issues of privacy, communication tools, information, and social level.