Ethereum (ETH) creator Vitalik Buterin is citing four significant reasons why the world needs cryptocurrency after the FTX collapse has emboldened its naysayers.
In a new interview on the Bankless podcast, Buterin highlights four use cases illustrating the benefits crypto brings people throughout the world.
Buterin says crypto is already a better way to make transactions when sending donations to various charities and investing in startup ventures.
“I personally have used cryptocurrency as money huge numbers of times over this year. For me, the use case basically is medium-scale investments and charity donations. Just sending $200,000 to some charity that’s giving money to poor people or supporting healthcare in Africa or somewhere like that. Just like quickly routing money to medical organizations that are based in all kinds of countries.
Investing in startups.
These are all cases where cryptocurrency is actually significantly more efficient than the existing banking system. I don’t think that it’s temporary. I think that there’s structural reasons why cryptocurrency is better at surviving as a frictionless international thing than like fiat traditional banking systems do.”
Buterin also says crypto offers governments around the globe a currency that can compete against the US dollar.
“From the point of view of a country government, having 10% of your national economy suddenly be carried out in cryptocurrency is much less scary than 10% of your economy suddenly being carried out in US dollars. Because in the second case. the US government has power over you. In the first case, it doesn’t. So there definitely is this structural aspect where because of its neutrality, cryptocurrency has an advantage that fiat currencies cannot have.”
Lastly, Buterin says crypto is an important currency for people living in developing nations, such as for making cross-border payments without having to pay high remittance fees.
“You go to all kinds of places in Latin America, Africa, Middle East, Southeast Asia and those kinds of places, there the financial system is often not even well-connected to rich country financial systems.
Often enough, cryptocurrency just is by far the easiest way to send money home to people’s families. Cryptocurrency, it can be even the easiest way to make payments. It could be the easiest way to save money that is much more guaranteed it’s not dropped by a factor of two every year for pretty much forever.”