Ethereum creator Vitalik Buterin names four reasons why the world needs cryptocurrencies

Ethereum (ETH) creator Vitalik Buterin cites four significant reasons why the world needs cryptocurrency after the FTX crash emboldened his naysayers.

In a new interview on the Bankless podcast, Buterin highlights four use cases that illustrate the benefits cryptocurrencies bring to people around the world.

Buterin says encryption is already a better way to transact when sending donations to various charities and investing in startup initiatives.

“I have personally used cryptocurrency as money a huge number of times this year. For me, the use case is basically medium-scale investments and charitable donations. I’m just sending $200,000 to some charity that’s giving money to the poor or supporting health care in Africa or somewhere like that. Just like quickly routing money to medical organizations that are based in all kinds of countries.

Invest in startups.

These are all cases where cryptocurrency is actually significantly more efficient than the existing banking system. I don’t think it’s temporary. I think there are structural reasons why cryptocurrency is better suited to survive as a frictionless international thing than how traditional fiat banking systems do.

Buterin also says that cryptocurrencies offer governments around the world a currency that can compete with the US dollar.

“From a country’s government perspective, suddenly having 10% of your national economy made in cryptocurrency is far less scary than having 10% of your economy suddenly made in US dollars. Why in the second case. the US government has power over you. Not in the first case. So there’s definitely this structural aspect where because of its neutrality, cryptocurrency has an advantage that fiat currencies can’t have.”

Finally, Buterin says that cryptocurrency is an important currency for people living in developing countries, for example to make cross-border payments without having to pay high remittance fees.

“You go to all kinds of places in Latin America, Africa, the Middle East, Southeast Asia and those kinds of places, the financial system there is often not even well connected to the financial systems of rich countries.

Quite often, cryptocurrency is by far the easiest way to send money home to people’s families. Cryptocurrency, it can also be the easiest way to make payments. It may be the easiest way to save money that’s far more guaranteed not to be reduced by a factor of two every year pretty much forever.

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