Vitalik Buterin warns: Politician tokens are “perfect vehicle for bribery”
- Political currencies can facilitate bribery and influence elections
- Vitalik Buterin warns of democratic risks of cryptocurrencies
- Cryptocurrencies issued by politicians spark debate on transparency
Ethereum co-founder Vitalik Buterin recently expressed concerns about the rise of “political coins” issued by elected figures. In a post on X on Jan. 23, Buterin noted that the regulatory environment for digital assets has entered a “new order” where “the most powerful people in the world […] are applauding the idea of anyone creating tokens for anything, at any scale.”
There is perhaps an analogy with weed here.
Ten years ago, to many weed represented freedom, and rebellion against sclerotic old order that denied self-sovereignty over our bodies. Then, weed became legalized, and "official".
On that day, I remember my personal interest in weed…
- vitalik.eth (@VitalikButerin) January 23, 2025
While he did not directly mention former US President Donald Trump and the launch of his official TRUMP token, Buterin suggested that such projects offer only “short-term fun” and do not contribute to building sustainable wealth. He warned that “large-scale political currencies cross an additional line: they are not just sources of fun, the harm of which is at best confined to mistakes made by willing participants; they are vehicles for unlimited political bribery, including of foreign nations.”
These remarks echo previous concerns from Buterin. In July 2024, he published an article advising voters not to support candidates simply because they declare themselves “pro-crypto,” but to examine their core values. At the time, he criticized authoritarian governments that embrace cryptocurrencies as a way to circumvent economic sanctions, while opposing the principles of freedom and decentralization that underpin the crypto movement.
Since the launch of the TRUMP token on January 17, critics within and outside the crypto industry have suggested that such a project could allow foreign governments to influence the US president through the purchase of the token. The Foreign Emoluments Clause of the US Constitution restricts members of the government from receiving gifts from foreign states.
According to a report from Fortune on January 21, the Washington-based watchdog group Citizens for Responsibility and Ethics is exploring legal action against the TRUMP token, although it acknowledges that the legal basis is unclear. Before Trump, no U.S. president had launched a cryptocurrency or had such extensive financial ties to foreign companies and governments.
Buterin stressed that while the cryptocurrency market offers opportunities for innovation, it is crucial to distinguish between projects that provide “short-term fun” and those that contribute to long-term wealth building. He compared some crypto projects to “modern highly addictive mobile games,” while others resemble traditional games like “chess” that promote intellectual and strategic development.
The discussion around the intersection of cryptocurrencies and politics continues to evolve, with industry leaders like Buterin urging caution and reflection on the ethical and social implications of these developments.
Responding to Buterin’s concerns, Emad Mostaque, founder of Stability AI, noted that politicians are incentivized to adopt such schemes, especially if their peers are doing so. Mostaque argued: “The problem is that the recommendation is not to go down this path for the overall health of the system, but they are incentivized to do so out of competition.”
Buterin has proposed two possible frameworks for creating political systems that are more resilient to these vulnerabilities. One approach would be to insulate political leaders from outside influence, eliminating the benefits of taking bribes. The other would be to distribute power more broadly, reducing the incentive to corrupt any specific individual. Buterin has highlighted his preference for the latter, favoring decentralized structures that dilute individual influence and reduce opportunities for corruption.
As cryptocurrencies and blockchain-based assets gain prominence in global political and economic discourse, figures like Buterin have emphasized the need for regulatory oversight and structural reforms to ensure that technological advances do not undermine democratic institutions.
Buterin has previously addressed the ethical and social implications of blockchain applications, advocating for innovations that prioritize social benefit over short-term gains. His recent comments reinforce the need to balance technological progress with democratic integrity.
The intersection of cryptocurrencies and politics remains a complex topic, requiring careful consideration of ethical and social implications. Industry leaders like Buterin continue to advocate for a balanced approach that promotes responsible innovation and the preservation of democratic values.
The discussion on “political currencies” highlights the need for careful regulation and thoughtful reflection on the role of cryptocurrencies in modern society. As technology advances, it is imperative to ensure that its use does not undermine the fundamental principles of democratic governance. Buterin concluded by emphasizing the importance of decentralized structures that dilute individual influence and reduce opportunities for corruption, fostering a more fair and abuse-resistant political system. The intersection of cryptocurrencies and politics continues to be a topic of debate, with industry leaders urging caution and reflection on the ethical and social implications of these developments.
The discussion of “political currencies” highlights the need for careful regulation and deep reflection on the role of cryptocurrencies in modern society. As technology advances, it is imperative to ensure that their use does not undermine fundamental principles of democratic governance.
Buterin concluded by emphasizing the importance of decentralized structures that dilute individual influence and reduce opportunities for corruption, fostering a more fair and abuse-resistant political system. The intersection of cryptocurrencies and politics continues to be a topic of debate, with industry leaders urging caution and reflection on the ethical and social implications of these developments.
The discussion on “political currencies” highlights the need for careful regulation and deep reflection on the role of cryptocurrencies in modern society.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
US Senator Cynthia Lummis posts 'laser eye' picture on social media
Data: USDC circulation increased by approximately 5.5 billion in the past 7 days
Fidelity FBTC had a net inflow of $186.1 million yesterday