Vitalik proposes Ethereum as a digital plan B in the face of a return to paper money

• Vitalik Buterin defends Ethereum as an alternative to centralized systems
• Sweden and Norway reconsider abandoning physical cash
• Ethereum needs to evolve in privacy and decentralization

Ethereum co-founder Vitalik Buterin has made a compelling proposal amid Sweden and Norway’s shift away from cash. In a post published on X on May 25, Buterin commented on the retreat of these countries, which until recently had been leading the global trend toward full digitalization of payment methods.

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

With geopolitical tensions rising and concerns about cyberattacks mounting, Swedish and Norwegian authorities are now urging citizens to maintain the use of cash as a national security measure. The rationale is clear: in cases of network failure, cyberwarfare or severe disruptions to banking systems, cash remains the most resilient and accessible payment method.

Vitalik Buterin saw in this scenario an opportunity to position Ethereum as an alternative digital infrastructure, but with an important caveat: for this to happen, the network needs to become much more secure, private and resistant to failures.

“Ethereum needs to be resilient enough and private enough to be able to reliably play this kind of role,” Buterin wrote.

He criticized the excessive centralization of current digital systems, suggesting that this structural weakness is precisely the reason why paper money is still indispensable. According to him, the proposal for a completely cashless society would only be viable if supported by truly decentralized technologies that are immune to single points of failure.

Ethereum is currently undergoing significant changes, with updates aimed at scalability, such as the introduction of Layer 2 solutions. However, challenges such as high transaction fees and technical limitations still hinder its adoption as support in critical situations.

The discussion raises important points about the balance between innovation and resilience in payment systems, and highlights the role that cryptocurrencies such as Ethereum can play if they can evolve in key aspects such as decentralization and privacy.