Ethereum co-founder responds to Sweden’s cashless-society rethink

Sweden Rethinks the Cashless Future — and Vitalik Buterin Sees a Role for Ethereum

For years, Sweden has led the charge toward a fully cashless society — but the tide may be turning. Rising concerns about cyberattacks, national defense, and financial resilience are pushing Swedish authorities to reverse course and encourage citizens to keep physical cash on hand.

Vitalik Buterin, co-founder of Ethereum, sees this as a wake-up call — not just for Sweden, but for any nation overly reliant on centralized digital infrastructure.

“The Nordics are walking back the cashless society initiative because their centralized implementation of the concept is too fragile,” Buterin wrote, citing The Guardian. “Cash turns out necessary as a backup.”

Sweden’s case is telling: despite a 2018 prediction that the country would be cashless by 2025 — a forecast that came close to reality — the government is now urging citizens to hold at least one week’s worth of cash in case of war or systemic failure.

Buterin argues that Ethereum could step in where centralized systems fall short — offering a decentralized, privacy-preserving financial fallback. The key, he says, is ensuring Ethereum remains resilient and private enough to serve as a credible alternative in times of crisis.

When asked about the feasibility of fully offline, zero-knowledge crypto transfers, Buterin noted that while the technical foundations exist, practical implementation still depends on trusted hardware or strong post hoc enforcement to prevent double-spending.

“We basically know how to do it,” he explained, “but with the limitation that any solution depends on trusted hardware and/or post hoc enforcement against double-spenders.”

The bigger takeaway? Sweden’s reversal may mark a broader recognition: resilience must come before efficiency in designing financial systems. In that light, Ethereum — and decentralized technologies more broadly — may be less a disruptor than a necessary layer of defense.