Vitalik Buterin’s Take on Crypto in Politics

Vitalik Buterin, the co-founder of Ethereum, recently shared his thoughts on the intersection of cryptocurrency and politics. His insights are particularly relevant for anyone interested in the future of blockchain technology. Let’s explore his key points and understand his perspective.

The growing political involvement in crypto

Buterin begins by acknowledging the increasing importance of crypto in political policy. He highlights various legislative efforts worldwide, such as the Markets in Crypto Assets regulation (MiCA) in the EU and stablecoin regulations in the UK. In the United States, there’s a complex mix of legislation and regulation-by-enforcement from the SEC. While many of these efforts are reasonable, Buterin warns against extreme measures like treating all coins as securities or banning self-hosted wallets.

The risk of supporting politicians solely for their crypto stance

There’s a growing push within the crypto community to become more politically active, often favoring parties and candidates based on their friendliness towards crypto. However, Buterin argues against this trend, suggesting that it risks betraying the very values that brought people into the crypto space in the first place.

Beyond cryptocurrency and blockchains

“Crypto” is not just about cryptocurrency and blockchains, Buterin reminds us. He believes there’s an overemphasis on money and the freedom to hold and spend it as the most crucial political issue. While he agrees that financial freedom is important, he emphasizes that the original ideology behind crypto was broader. It was rooted in the cypherpunk movement, which advocated for free and open technology to protect individual freedoms.

The broader ideology of crypto

Buterin recalls the early days of the internet, where the fight was against restrictive copyright legislation pushed by corporate lobbying organizations. The tools of that fight were torrent networks, encryption, and internet anonymization. Decentralization was a key lesson learned, as Satoshi Nakamoto, the pseudonymous creator of Bitcoin, stated in answer to a comment that ‘we will not find a solution to political problems in cryptography’: “Yes, but we can win a major battle in the arms race and gain a new territory of freedom for several years. Governments are good at cutting off the heads of… centrally controlled networks like Napster, but pure P2P networks like Gnutella and Tor seem to be holding their own.”

The point, Buterin argues, is to contextualize the mentality that created blockchains and cryptocurrency: freedom is important, decentralized networks protect freedom, and money is just one sphere where these networks can be applied. He believes there are other technological freedoms just as foundational as the freedom to use crypto tokens.

Other technological freedoms

Buterin highlights several other freedoms, such as the freedom and privacy of communication, digital identity, and thought. He also emphasizes the importance of high-quality access to information, which helps people form informed opinions in an adversarial environment. These freedoms extend beyond technology, impacting areas like family rights and economic equity.

Aligning with deeper goals

His underlying message is clear: if you’re involved in crypto, it’s not just because it’s crypto. It’s because of deeper goals. He encourages people to stand with those underlying goals and the policy implications they entail.

“…if you’re the type of person who’s willing to read this article past the first paragraph, you’re not in crypto just because it’s crypto, you’re in crypto because of deeper underlying goals. Don’t stand with crypto-as-in-cryptocurrency, stand with those underlying goals, and the whole set of policy implications that they imply.”

Vitalik Buterin – Co-Founder of Ethereum

Are current “pro-crypto” initiatives real?

Buterin criticizes current “pro-crypto” initiatives for not considering these broader freedoms. He points out that many politicians who support crypto trading freedoms may not share the same values on other important issues. This could lead to different conclusions on future matters that crypto enthusiasts care about.

The importance of internationalism

Internationalism is another cause close to Buterin’s heart. He believes that the internet and cryptocurrency can contribute to a more equal-access and globalized digital society. However, he notes that many politicians fail to consider the global implications of their policies. He argues that internationalism is often overlooked by statist egalitarian politics, which tend to focus on domestic issues without considering global inequality. He highlights that two-thirds of global inequality exists between countries rather than within them.

The future of crypto-friendly politics – balancing crypto and AI

Buterin also warns that being crypto-friendly now doesn’t guarantee the same stance in the future. He advises looking at politicians’ past views on crypto and related topics to gauge their future positions. He highlights the potential divergence between decentralization and acceleration (the rapid advancement and development of technology, particularly in the context of artificial intelligence (AI)). These two goals might diverge, especially in AI, where acceleration could lead to centralized control and privacy issues, while decentralization aims to prevent such outcomes.

The authoritarian approach to crypto

He cautions against a particular style of being “crypto-friendly” common among authoritarian governments. These governments often adopt a dual strategy: they use crypto to circumvent external restrictions, which they see as beneficial, while simultaneously restricting their citizens’ use of crypto to maintain control and surveillance. This approach allows them to leverage the advantages of cryptocurrency for their own purposes while preventing it from empowering their populace. Buterin warns that politicians with power-seeking tendencies may follow this path.

Conclusion: supporting the right reasons

In conclusion, Buterin urges crypto enthusiasts to consider whether politicians are supporting crypto for the right reasons. Do they have a vision for technology, politics, and the economy that aligns with yours? If so, support them and make it clear why. If not, either stay out entirely or find better forces to align with.

Buterin’s insights remind us that the crypto movement is about more than just financial freedom. It’s about broader technological and societal freedoms that can shape the future. As we navigate the complex world of crypto and politics, it’s essential to keep these values in mind and support those who genuinely share them.

Original post: Against choosing your political allegiances based on who is “pro-crypto”

Summarised using the assistance of ChatGPT. Featured image generated by Midjourney.