Ethereum Creator Vitalik Buterin: The World Society Needs Crypto For Transactions

JAKARTA Vitalik Buterin, founder of Ethereum (ETH) recently revealed the importance of cryptocurrencies. According to him, cryptocurrencies have benefits that can be used as a medium of exchange in various countries, including in developing countries.

This statement was made by Buterin in a podcast with Bankless. He revealed four reasons why cryptocurrencies are needed by the world community.

Buterin said crypto has become a better way to make transactions when sending donations to various charities and investing in startup businesses. In his statement, Buterin also admitted that he often uses crypto as money.

"I personally have used cryptocurrency as a very large amount of money during this year. For me, the case of its use is basically an intermediate scale investment and charity donation," said Vitalik Buterin, quoted by DailyHodl.

"Just sending 200,000 US dollars to some charities that give money to the poor or support health care in Africa or somewhere like that. It's just as fast as channeling money to medical organizations based in all types of countries," added the founder of Ethereum.

According to him, cryptocurrencies are more efficient than traditional banking systems today. He believes cryptocurrencies can last longer as a medium of international exchange than fiat money.

These are all cases where cryptocurrencies are actually significantly more efficient than existing banking systems. I don't think that this is only temporary. I think there is a structural reason why cryptocurrencies are better at defending as an international thing without friction than in such a traditional banking system fiat money," he said.

Furthermore, Buterin unraveled the weakness of fiat money like the US dollar which is actually controlled by the US government. He considered government control over financial ownership to be a frightening thing. Meanwhile, cryptocurrencies that are decentralized or not controlled by any entity have superior value to money. In addition, he emphasized that cryptocurrencies excel in terms of neutrality.

The Importance of Crypto Currency for Developing Countries

Then, the founder of Ethereum explained the importance of cryptocurrencies for those living in developing countries. Because they use crypto to make cross-border payments between countries without paying high money transfer fees.

Cryptocurrencies are more efficient, fast, and instant. Users also don't have to pay high shipping fees for overseas transfers and don't have to wait a long time for delivery. While fiat money is the opposite. The reason is, the financial system in developing countries is not connected to financial systems in rich countries.

"You go to all kinds of places in Latin America, Africa, the Middle East, Southeast Asia, and places like that, where the financial system is often not well connected to the rich country's financial system," Vitalik Buterin said.

Often, cryptocurrencies are the easiest way to send money home to people's families. Cryptocurrencies, can even be the easiest way to make payments. This can be the easiest way to store much more secure money doesn't double every year for a long time, "said the creator of Ethereum.