https://fortune.com/2021/02/18/bitcoin-censorship-political-repression-deplatforming-china-belarus-russia-nigeria-crypto/Bitcoin offers freedom from political repression—and that’s a key to its futureFreedom from financial oppression
Bitcoin usage in emerging markets is increasing rapidly, albeit from a small base. And while it’s true that Bitcoin can be a better alternative for unbanked peoples who don’t have the means, access, or even the basic proof of identity to open a bank account, it turns out its biggest benefit today for many people is that Bitcoin is censorship-resistant. In other words, government cannot throttle, control or monitor your behavior as they can in the legacy financial world. Consider the following examples from Nigeria, India, Belarus, China, and Russia (collectively home to 3 billion people).
In 2020, protests against the government erupted in Lagos and across Nigeria because of the brutal and illegal actions of a unit in the police force called the Special Anti-Robbery Squad (SARS). Within days, groups supporting the protesters had their bank accounts frozen. With no other option, they turned to Bitcoin, raising funds that sustained the movement.
[...]
Bitcoin, of course, has value beyond protest movements. One area where it is gaining traction is as a replacement for cash. Cash is essential to financial freedom because it allows for anonymous transactions and private, free exchanges of money outside state surveillance. Regrettably, cash is also in terminal decline, and this trend is not new. For decades, credit card payments have chipped away at cash’s role in our economy. The pandemic accelerated that decline as reports (later proved false) that cash was a carrier of COVID-19 caused many merchants to switch to card-only.
In the two largest developing economies, China and India, governments have taken steps to reduce cash in the economy. In China, the government wants to replace many transactions with a central bank digital alternative to keep a closer eye on how people spend money. In India, with a clumsy attempt to limit the role of cash in the informal economy and to crack down on counterfeiting, the government took high-denomination notes out of circulation.
The demise of cash highlights the need for a digital alternative to ensure private, safe payments between individuals. For example, in a China without cash, your access to credit, payments, and savings can simply be switched off if you disagree with the government, a form of financial deplatforming. Unsurprisingly, China has cracked down on Bitcoin. This battle between the most powerful surveillance state ever created and the most powerful stateless money ever created will be worth watching.
[...]
Regardless of your politics, the ability of big technology firms with unelected leaders to silence individuals and groups should be unsettling. Equally troubling is an administrative state imposing draconian rules to limit how we spend and save our money and to suppress free trade. Fortunately, regulators and policymakers in the U.S., Canada, and a few other countries have taken a more enlightened view of Bitcoin. The best solution, perhaps, is one where Bitcoin and other forms of money like the U.S. dollar thrive side by side, performing different and important roles in our economy and our lives.
