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ToggleDigital payments were once the future, but now they are a national security concern
As the world accelerates toward digitalization, Northern Europe was once seen as a model for achieving a cashless society. However, at a time when geopolitical risks are rising and cyber security breaches are frequent, this digital payment revolution is facing a moment of reassessment. Governments of countries such as Sweden and Norway are not only slowing down the pace of cashlessness, but are even calling on their citizens to carry cash again to deal with potential crises.
When a cashless society encounters the storm of reality
As early as 2018, the former deputy governor of the Swedish Central Bank predicted that the country would become a completely cashless society by 2025. Now, seven years later, this prediction has basically come true. According to the latest report from the Swedish Central Bank, only about 10% of transactions are made in cash, while most people prefer to use credit cards or Swish, a local mobile payment tool jointly launched by six banks.
However, amid the growing threat of hybrid attacks from Russia, the ongoing war in Europe and growing concerns about the vulnerability of digital payments, Swedish authorities are beginning to rethink the feasibility of a cashless society. From a national defense perspective, over-reliance on electronic transactions may actually create national security risks.
Swedish government: Please prepare a week's worth of cash
In order to improve the ability of the entire population to respond to crises, the Swedish government sent a guide titled "If a Crisis or War Comes" to households across the country as early as November last year, calling on the public to use cash on a daily basis and prepare at least a week's worth of cash reserves, and also suggesting that different denominations be included to "enhance response capabilities."
The Swedish central bank clearly pointed out in the report: "In the past, our payment policy prioritized efficiency, but now we must place security and accessibility on an equal footing." The government even proposed legislation requiring some public and private institutions to accept cash payments to prevent vulnerable groups from getting into trouble when digital systems crash.
Norway also turns to legislation to protect the right to cash payments
Sweden is not the only Nordic country to see a policy shift. Norway has also actively promoted digital payments in the past, and its citizens mostly use a mobile payment tool called Vipps MobilePay. In 2024, the Norwegian government officially passed a bill that explicitly stipulates that businesses who refuse to accept cash will be fined, and recommends that people hold cash as a backup.
Emilie Mehl, Norway’s then-Minister of Justice and Emergency Affairs, put it bluntly at the time: “If no one uses cash and no one accepts cash, then when a crisis comes, cash will not be able to play any emergency role.”
Vitalik: Blockchain must be able to play the role of "digital cash backup"
Ethereum co-founder Vitalik Buterin also expressed his views on the phenomenon of cash withdrawal in Nordic countries. He said on the social platform: "Nordic countries are reviewing their cashless policies because their centralized implementation methods are too fragile and cash is still a necessary backup. Ethereum must have sufficient flexibility and privacy to play a trusted role in such scenarios."
Vitalik's remarks point out the potential value of blockchain in the future financial system. He hinted that if decentralized networks such as Ethereum can further improve privacy protection and anti-censorship capabilities, they may become a new generation of emergency financial tools besides cash.
The digital future is still promising, but we must not lose sight of the big picture
Nordic reflections remind us that although digital finance has a promising future, we should not rely on it completely. When a crisis strikes, the physicality and anonymity of cash still have irreplaceable strategic value. At the same time, it also highlights the key role of blockchain and decentralized finance (DeFi) in providing reliable and censorship-resistant financial infrastructure.
Perhaps the real future is not a completely cashless society, but a hybrid payment system that is both flexible and optional - allowing people to enjoy the convenience of technology while also having the means to protect themselves at critical moments.
Risk Warning
Cryptocurrency investments carry a high degree of risk, their prices may fluctuate dramatically, and you may lose all your investment. Please assess the risks carefully.
Recently, news of Ripple and Coinbase bidding for USDC issuer Circle has aroused community concerns. If Ripple successfully wins the bid, it will control two major stablecoins at the same time, and may even bring about the "doomsday" of Ethereum, the DeFi ecosystem, and even the entire crypto field.
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TogglePrevious article: Ripple and Coinbase are interested in acquiring Circle
ABMedia previously reported that Ripple has now become a bidder interested in acquiring Circle, ahead of Coinbase, with a bid of up to US$9 to US$11 billion.
Circle is the issuer of USDC , which is an important stablecoin in the DeFi ecosystem of public chains such as Ethereum and Solana, with a total market value of US$60 billion and a market share of 24.6%. In comparison, Ripple's own stablecoin RLUSD has a market value of only about US$300 million, ranking 18th.
In fact, as early as the beginning of May, Ripple had offered to acquire Circle for $5 billion, but was rejected by Circle. The sharp increase in the price also highlights Ripple's ambition to control the stablecoin market.
Legal experts warn: Cryptopocalypse may begin here
Gabriel Shapiro, legal counsel at investment research firm Delphi Labs, issued a serious warning regarding the possibility of Ripple successfully acquiring Circle. He believes this is not just an acquisition, but a "doomsday fuse" that could shake the entire encryption infrastructure.
He pointed out that if Ripple controls both USDC and RLUSD, it will become the largest stablecoin issuer on all public chains, bringing monopoly and anti-competitive risks:
What’s even more worrying is that they will use the power that comes with this deal to launch malicious attacks on every DeFi protocol and other blockchains.
Shapiro stated that Ripple has spread FUD against competitors such as Ethereum many times in the past. If it controls the circulation of USDC in the future, it may force the DeFi ecosystem to flow to its own L1 XRP Ledger, resulting in a " choose side " situation.
Ethereum DeFi ecosystem faces structural threats
Another major risk of Ripple controlling USDC is that it will have a fundamental impact on the Ethereum DeFi ecosystem. Citing a 2019 report from Dragonfly Research, Shapiro pointed out that Ethereum has become an “ unforkable” system due to the interactive dependencies of its DeFi applications. However, this strong binding also makes it overly dependent on centralized stablecoins such as USDC:
If Ripple further controls the issuance policy of USDC, it may cause large protocols such as MakerDAO or Aave to lose stable asset support, triggering a liquidity and trust crisis, and further shaking Ethereum's position as a decentralized infrastructure.
A more serious statement is: " Whoever controls USDC controls DeFi and controls Ethereum. "
The spirit of decentralization faces severe challenges
This potential acquisition deal has also caused the community to reflect on encryption principles. Decentralization has always been the core value of the blockchain field, but USDC itself is a centralized asset controlled by a single company. If it falls into the hands of a more powerful company like Ripple, it will completely deviate from the spirit of decentralization .
In this regard, Shapiro called on Circle CEO Jeremy Allaire to think twice:
If the acquisition is finally completed, we will immediately go to the U.S. Department of Justice and the Federal Trade Commission to report Ripple’s past attacks on Bitcoin and Ethereum, and explain that Ripple’s acquisition of Circle will be a disaster for the entire crypto industry and violate antitrust principles.
Circle is at a strategic crossroads
At the moment, Circle seems to be in an awkward situation. As the issuer of USDC, it faces bidding pressure from Ripple and Coinbase on the one hand, and has to deal with market challenges brought about by the upcoming entry of traditional financial institutions and the gradual relaxation of the regulatory environment on the other hand:
If it chooses an IPO, it may expose the fragility of its profit structure and its dependence on Coinbase; but if it chooses not to go public, it may lose the opportunity for further expansion and fundraising.
Today, Circle, as a hub at the intersection of encryption and traditional finance, is facing a critical dilemma. At this time, redefining one's own direction, expanding diversified businesses and strengthening market dominance become top priorities.
Risk Warning
Cryptocurrency investments carry a high degree of risk, their prices may fluctuate dramatically, and you may lose all your investment. Please assess the risks carefully.
