Ethereum News Today: Vitalik Buterin Compares Visa's Origins to DAOs Highlighting Centralization Shift

Vitalik Buterin, co-founder of Ethereum, has sparked renewed interest in the evolution of governance within financial systems by drawing parallels between the early structure of Visa and decentralized autonomous organizations (DAOs). Speaking at a blockchain conference and across various platforms including X, Buterin noted that Visa’s founder, Dee Hock, initially pursued decentralized ideals, aiming to create a networked financial system with shared ownership and decision-making. However, Buterin emphasized that modern Visa operates as a highly centralized and profit-driven entity, with control mechanisms and high fees that many now view as exploitative [1][2].

Buterin’s insights highlight the tension between the decentralized vision that inspired early blockchain systems and the centralization often observed in their evolution. He argued that while the original intent of Visa was aligned with DAO principles—such as shared governance and cooperative networks—the company has since moved away from these ideals, adopting structures more typical of traditional financial institutions [3]. This shift, Buterin suggested, is emblematic of broader patterns in the evolution of financial systems, where institutions often transition from community-driven governance to more centralized models [4].

The discussion has fueled ongoing debates within the crypto community about the long-term viability of DAOs and the challenges they face in competing with centralized entities. Critics, including Buterin, have pointed out that despite the rise of Web3 technologies, centralized institutions maintain advantages in terms of scalability and regulatory compliance. On the other hand, DAO proponents argue that current limitations in governance and coordination will be mitigated as the technology and community structures mature [5].

Visa’s recent forays into crypto—such as integrating stablecoins into its payment rails and exploring tokenized assets—have not quelled concerns about centralization. While the company has taken steps to engage with digital money, its operations continue to rely on centralized control mechanisms, which many argue limit the potential benefits of decentralized systems [6].

At the same time, stablecoin usage has surged, with over $3.3 trillion moved on-chain in July 2025, and approximately 39.7 million monthly active addresses. As Ethereum layer-2 solutions reduce fees and more mainstream payment processors adopt stablecoin rails, the potential for large-scale adoption is growing. Some projections suggest that stablecoin-based payment networks could settle up to $5 trillion annually by 2026, challenging traditional payment systems [7].

Buterin’s comments underscore a central philosophical and structural tension in the financial system: the balance between decentralization and scalability. While DAOs offer a model of governance rooted in transparency and community control, they must contend with the entrenched infrastructure and regulatory clarity of traditional institutions. As the financial landscape continues to evolve, the ability of decentralized systems to coexist with or replace existing models will remain a defining question in the crypto space [8].

Source:

[1] Vitalik Buterin Says Visa Started Like a DAO, Now Seen as Centralized - Coinpedia (https://coinpedia.org/crypto-live-news/vitalik-buterin-says-visa-started-like-a-dao-now-seen-as-centralized/)

[2] Ethereum's Buterin Compares Visa Origins to DAOs - U.Today (https://u.today/ethereums-buterin-compares-visa-origins-to-daos)

[3] Vitalik.eth on X (https://x.com/VitalikButerin/status/1953782711807541727)

[4] Bitcoin.com News - X (https://twitter.com/BTCTN/status/19538139****0864393)

[5] Vitalik Buterin Highlights Visa's Decentralized Origins and ... - Binance (https://www.binance.com/en/square/post/08-08-2025-vitalik-buterin-highlights-visa-s-decentralized-origins-and-its-lessons-for-web3-28038261893057)

[6] Visa Balances Centralized Control With Crypto Expansion ... - AInvest (https://www.ainvest.com/news/visa-balances-centralized-control-crypto-expansion-evolving-payments-landscape-2508/)

[7] Stablecoin to settle $5 trillion and challenge SWIFT in 2026 ... - CryptoSlate (https://cryptoslate.com/stablecoin-projection-to-settle-5-trillion-and-challenge-swift-in-2026/)