Vitalik Buterin sees crypto utility growing in developing world, wary of CBDCs, exchanges Vitalik Buterin sees crypto utility growing in developing world, wary of CBDCs, exchanges
Buterin spotlights potential of crypto in emerging economies while voicing concerns over future of CBDCs and exchanges.
2 min read
Updated: Sep. 25, 2023 at 8:41 am UTC
John Phillips / TechCrunch / CC BY 2.0 / Wikimedia. Remixed by CryptoSlate
According to an interview with CNBC, Ethereum co-founder Vitalik Buterin believes cryptocurrencies currently provide the greatest utility in emerging economies. While developed nations often view crypto as a speculative investment, Buterin claims its most meaningful use cases exist in lower-income countries.
As CNBC reported, Buterin told them that crypto helps provide developing nations with essential financial services they currently lack, like cross-border payments, savings options, and access to the international economy. The Ethereum co-founder claimed he saw higher adoption and more excitement about crypto when visiting places like Argentina versus tech-savvy cities like San Francisco.
Buterin also acknowledged that centralized actors like exchanges are essential in onboarding users in developing countries. However, he believes the ideal future is one where people can transact peer-to-peer on blockchain networks directly. The programmer stated that blockchains need to become dramatically easier to use and more secure for this vision to become a reality. He cited goals like sub-5 cent transaction fees, minimal failed transactions, and highly secure wallet solutions.
Buterin told CNBC that proper on-chain privacy and anonymity tools are critical. He voiced concerns about the precedent being set by legal actions against developers of privacy protocols like Tornado Cash. Buterin believes proof-of-stake networks like Ethereum post-merge may now be more resistant to government intervention and easier to operate anonymously than proof-of-work chains.
On central bank digital currencies (CBDCs), the Ethereum founder said he was more optimistic 5 years ago. He claimed many CBDC projects have strayed from their original goals like privacy and transparency. Buterin worries these government initiatives may now become surveillance-enabled versions of the existing financial system.
Overall, Buterin remains focused on Ethereum delivering value to regular users through improvements like scalability. He aims for the network to move past its current experimentation stage into one defined by usable applications. Buterin also noted that while he and the Ethereum Foundation played a more prominent role in the past, the ecosystem has grown far more independent and decentralized now. He believes that even if something happened to him or legal action was taken against the foundation, development would continue unimpeded at this point.
Vitalik Buterin continues to be one of crypto’s most influential figures, given his role in the creation of Ethereum. His views provide insight into the industry sectors currently seeing the most adoption and what future trends may emerge. While only time will tell if his vision comes to fruition, Buterin offers an optimistic perspective on cryptocurrency, creating tangible utility where it is needed most globally.
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Liam 'Akiba' Wright
Also known as "Akiba," Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Ethereum Foundation
Ethereum Foundation, a Swiss nonprofit organization, is a worldwide team of passionate developers.
Vitalik Buterin stands as the pioneering force behind Ethereum, a transformative community-driven platform that fuels the cryptocurrency ether (ETH) and underpins a myriad of decentralized applications.