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

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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 highlights 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 my currency a lot of times this year. For me, the use case is basically for mid-scale investments and charitable donations. I just sent $200,000 to a charity that gives money to the poor or supports health care in Africa or somewhere like that. Just like quickly funneling money to medical organizations based in all kinds 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 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 made in cryptocurrency is much less scary than 10% of your economy suddenly made in US dollars. Because in the second case. the US government has power over you. In the first case, this is not the case. So there is this structural aspect where, because of its neutrality, cryptocurrency has an advantage that fiat currencies cannot 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, in Africa, in the Middle East, in Southeast Asia and in those kinds of places, there the financial system 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 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 decrease by a factor of two every year for pretty much forever.

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