Ethereum Must Be Ready for Cash Like Use Cases Says Co-Founder

Vitalik Buterin has shared fresh thoughts on Ethereum’s future use, this time in the context of Sweden’s experience with going nearly cashless. Reacting to recent developments in the Nordic country, the Ethereum co-founder pointed out how Ethereum could step in to fill some of the gaps that centralized digital systems have struggled to address.

Good to know

• Sweden aimed to be cashless by 2025 but is now encouraging people to hold physical cash again.
• Sweden ended its digital currency pilot, the e-krona, in 2023.
• Buterin wants Ethereum to be ready to serve as a cash alternative in unstable situations.

In a post on X, Buterin responded to a Guardian report that outlined Sweden’s change in stance. After years of pushing towards a cash-free society, the country has started advising citizens to keep some cash on hand. The shift comes amid growing geopolitical tensions, especially related to the war in Eastern Europe.

Sweden’s central bank, the Riksbank, acknowledged the need to reconsider earlier digital ambitions. In March, the Riksbank confirmed that the e-krona pilot had ended because it saw no strong public demand for a central bank digital currency (CBDC). But it also left the door open to revisit the idea if the European Central Bank moves ahead with a digital euro.

According to the Riksbank:

“The Payments Inquiry’s assessment in 2023 was that there was insufficient social need for the Riksbank to issue an e-krona. At the same time, the inquiry considered that the Riksbank should continue to evaluate the conditions for issuing an e-krona so that it is possible to introduce an e-krona within a reasonable time if the Riksdag takes such a decision.”

Buterin’s take focused on how centralized systems, like Sweden’s push to go cashless, can end up being fragile in uncertain times. He wrote:

“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.”

Buterin’s remarks reflect a broader idea often discussed in the crypto community — that decentralized systems should be able to support users in moments when traditional systems falter. For Ethereum, that means building toward better privacy, reliability, and ease of use for everyday payments.