The widespread power outages that recently plunged Portugal and Spain into darkness shed light on the enduring value of cash during critical situations. This event also prompted questions about the truly decentralized nature of cryptocurrency, given its reliance on centralized electricity infrastructure.
BeInCrypto spoke with representatives from CertiK, Brickken, Wanchain, and Money on Chain to learn what this means for public trust in crypto and what the sector needs to provide financial services around the clock, even when centralized distribution channels fail.
Digital Finance Grinds to a Halt
A significant power disruption last week left millions in the dark across Spain and Portugal, with knock-on effects in parts of France and Morocco.
According to research from the Baker Institute, Spain lost approximately 15 gigawatts of capacity in just five seconds, equivalent to 60% of its national electricity demand. The outages lasted for about 18 hours.
Without internet and electricity, daily financial instruments like home banking services, digital wallets, and ATMs became obsolete.
“When power grids fail, the entire ecosystem behind these systems grinds to a halt: Mobile phones can’t connect, ATMs shut down, and internet-based wallets become inaccessible. In such moments, the digital economy exposes a key vulnerability—without electricity, the convenience of tech-driven finance collapses,” Natalie Newson, Senior Blockchain Investigator at CertiK, told BeInCrypto.
During those hours, cash won back the throne of preferred payment.
“This is why access to physical cash remains critical, not only in developing countries but also in developed nations— as seen during recent outages in Europe. Digital systems, whether centralized or decentralized, are ultimately dependent on power and connectivity. Cash provides a reliable fallback in scenarios where digital tools fail,” Manuel Ferrari, Co-founder of Money On Chain, told BeInCrypto.
Is Crypto’s Decentralization Meaningless Without Access and Power?
The demonstrated need for paper currency during infrastructure disruptions suggests that even though crypto is a modern financial innovation, it still falls short of its predecessors during challenging circumstances.
Even with its core principle of decentralization, blockchain technology relies significantly on centralized infrastructure.
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Policy Solutions for a Resilient Digital Economy
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