Vitalik Buterin reveals the strategy for coexistence of the crypto community with government institutions

Ethereum founder recently shared deep reflections on Farcaster about how the technological world and political structures should interact in the digital age. According to Foresight News, Buterin rejects the idea of a simple dichotomy: his position is that states and corporations cannot be categorized as exclusively friendly or hostile forces.

The Paradox of State Policy: Double Standards in Action

To illustrate this point, Vitalik provided clear examples of political inconsistency. The European Union actively sponsors and supports open-source projects but simultaneously insists on implementing mandatory encryption mechanisms for surveillance of communications (for example, control through mandatory encryption keys, as demonstrated by many foreign agencies). An even more telling example is the United States: the US government uses the Signal app for its own communications, despite the existence of the Patriot Act, which could potentially allow increased surveillance of such channels.

These contradictions reveal the core issue: institutions pursue a dual goal — protecting their own interests within their territory while simultaneously limiting the ability of other entities to operate independently.

Optimal Tactics for Organized Structures

Buterin emphasizes a key principle that should guide the behavior of states and large corporations: full control over their own sphere of influence combined with a resolute opposition to external interference. This strategy, in his view, will dominate in the coming decade.

Institutions will take serious steps to minimize dependence on external participants. In the context of stablecoins, this means that digital asset issuers will strive for blockchain management that remains sufficiently decentralized and not under the control of any single government. At the same time, governments will strengthen Know Your Customer (KYC) requirements, trying to maintain control over financial flows within their jurisdictions.

Trends in Privacy Tools Development

Despite these attempts at restriction, privacy-enhancing technologies will continue to evolve. That’s why data protection issues remain critical: from organizing encrypted communication (like in the case of Signal-like apps) to methods of anonymous interaction. Progress in cryptography and privacy technology will remain constant, despite efforts by states to introduce standardization and control.

Ethereum as a Global Censorship-Resistant Platform

A central role in this ecosystem is played by Ethereum. Buterin emphasizes that the Ethereum blockchain functions as a global computer, architecturally resistant to censorship and government interference. This means that cyberpunks and decentralization advocates should not view state structures with complete hostility or distrust.

Path Toward Mutually Beneficial Cooperation

Instead of a confrontational approach, Buterin proposes that the crypto community adopt a more pragmatic stance — a strategy of open dialogue and mutual cooperation. At the same time, crypto advocates must actively defend their interests and values, resisting pressure.

Focus should be placed on developing and strengthening three components: layers of financial independence, social structures based on principles of freedom, and identification systems that respect individual autonomy. These three pillars will enable the creation of an ecosystem where people can interact while maintaining control over their personal information and privacy rights.

Vitalik’s position leads to an important conclusion: the future does not envisage a complete victory for either side but requires a careful balance between preserving individual rights and maintaining the functioning of societal institutions.