A recent power outage affecting Portugal and Spain highlighted the importance of cash in critical situations and raised doubts about the decentralization of cryptocurrency due to its reliance on centralized electricity networks. BeInCrypto interviewed experts from CertiK, Brickken, Wanchain, and Money on Chain to explore the impact on public trust in cryptocurrency and the need for continuous financial services when centralized systems fail.

The power disruption in Spain and Portugal led to millions without power and underscored the reliance on electricity for daily financial transactions like digital banking and ATMs. The outage emphasized the significance of physical cash during emergencies, depicting the vulnerability of digital financial systems without electricity.

While cryptocurrencies are decentralized in principle, they still rely on centralized infrastructure, such as cloud providers and the internet, making them ineffective during power outages. The limitations of crypto during crises could erode public trust in its utility as an alternative financial solution.

The incident prompted discussions on enhancing crypto's resilience, including offline usability features and decentralized physical infrastructure networks (DePINs) to minimize dependence on centralized grids. While DePINs show promise in improving grid resilience, they are not a complete solution and require integration with existing infrastructure for long-term viability.

To ensure the resilience of the digital economy, policymakers need to diversify energy sources, support local microgrids, incentivize offline crypto solutions, and adapt regulatory frameworks. Strengthening physical infrastructure resilience is crucial for maintaining the functionality of digital systems during crises, ensuring their reliability when most needed.