Ethereum creator Vitalik Buterin cites four reasons why the world needs crypto money

Ethereum (ETH) creator Vitalik Buterin cites four important reasons why the world needs cryptocurrency after the collapse of FTX emboldened its naysayers.

In a new interview on the Bankless podcast, Buterin strong points four use cases illustrating the benefits crypto brings to people around the world.

Buterin says crypto is already a better way to transact when sending donations to various charities and investing in startups.

“I have personally used cryptocurrency as a currency a lot of times this year. For me, the use case is mostly for mid-scale investments and charitable donations. I just sent 200 $000 to a charity that gives money to the poor or supports healthcare in Africa or somewhere like that, just like quickly funneling money to medical organizations based in all sorts of countries.

Invest in start-ups.

These are all instances 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 survives better as a frictionless international thing than traditional fiat banking systems do.

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

“From the perspective of a country’s government, having 10% of your national economy suddenly realized in cryptocurrency is much less scary than 10% of your economy suddenly realized in US dollars. Because in the second case the US government has power over you, in the first case it does not, so there is definitely this structural aspect where, due to its neutrality, cryptocurrency has an advantage over fiat currencies can’t have.

Finally, Buterin claims that crypto 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, there the financial system often isn’t even well connected. to the financial systems of rich countries.

Quite often, cryptocurrency is by far the easiest way to send money to people’s families. Cryptocurrency, it may even be the easiest way to make payments. This might be the easiest way to save money that’s much more guaranteed that it won’t be halved every year for pretty much forever.

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