Recently, Sweden and Norway have shifted their approach to physical cash, which, according to Ethereum founder Vitalik Buterin, highlights the need for enhancing the reliability of blockchain systems.
Sweden's Cashless Reversal
Sweden previously aimed to transition to a cashless economy by 2025. Currently, cash accounts for only one-tenth of all transactions, with cards and the Swish app being the primary methods of payment. Due to safety concerns, the government has issued guidance on storing cash. The central bank has altered its priorities, focusing on crisis readiness. Authorities announced that 'measures must boost preparedness and reduce exclusion.'
Ethereum's Current State Amid Changes
Vitalik Buterin asserts that the renewed focus on physical money in Sweden and Norway showcases the need for better backup functions in Ethereum. He noted that 'cash remains essential as backup, and Ethereum needs enough durability and privacy for this purpose.' In this context, he emphasizes that centralized digital currencies have vulnerabilities, and Ethereum must operate independently of outside infrastructure.
The Future of Ethereum and New Technologies
Buterin also discussed new potential developments for Ethereum, including the introduction of stateless clients, zk-based privacy layers, and smart contract wallets. These steps will improve the user experience and enhance the network's decentralization. Current achievements by the Ethereum development team, such as the deployment of proto-danksharding (EIP-4844), have already reduced data availability costs by 70%, thereby boosting efficiency.
Thus, the changes in cash policy in Sweden and Norway underscore the importance of reliable and decentralized payment systems like Ethereum, which could significantly impact the future of financial technology.
