Decentralized networks such as Bitcoin’s don’t know national allegiance, they only know math. And when you’re trying to get your savings out of an ATM, or send a payment to relatives in a war-torn environment, someone else’s politics is the last thing you want standing in the way of you and your loved ones’ well-being — regardless of what colors may be on the flag waving above your head.
Sanctions: The Human Cost
In war, there are no losers. They are started by politicians and bankers, while everyday people like us, such as you, suffer, die, and then kill each other.
Imagine this: Russia is your home. The value of your money — the ruble — is tumbling. What’s more frightening are the long lines forming in front of ATMs and banks, and the confusion at public transportation hubs as major corporations like Google and Apple are restricting services, while major banks are cut off from the SWIFT payments network.
Even though you support war, you may have relations in Ukraine. Many media reports claim you are their enemy. Even the institutions you somewhat trust, such as forward-thinking cryptocurrency exchanges, are being pressured to “sabotage ordinary users” by top-ranking government officials. This is how sanctions work.
Decentralized crypto, which is still possible to use and keep value, can be found. Take a look at the recent honking for peaceful coexistence in Ottawa, Canada. In the Ukraine, too, as your relatives seek shelter in the midst of a conflict they never asked for, they are being aided by crypto donations that aren’t subject to arbitrary borders drawn by politicians. The government is even asking. It is an instrument. Anyone can use it, whether for good or for ill.
It doesn’t matter how the news media are reporting on it, or what side you believe is correct or wrong. You still have control over your money.
People Turn to Cryptocurrency in Sanctioned Areas Around the Globe
It is being prepared for the potential ripple effect from the latest wave of western sanctions directed at Russian citizens. You can read more about this here. BitcOin.coM news reported just this week, some economists in Venezuela are already predicting trouble for Venezuela’s banking system (and in effect, of course, people), as major Russian banks are now being banned from accessing SWIFT. Jose Guerra, a Venezuelan economist explained his views via Twitter.
Restrictions on trade are likely to sting any country that has significant financial ties with Russia.
Cuba is a country that has had to deal directly with the U.S. trade embargoesOver the past decades one has seen how restrictions on trade have had an impact. This is why crypto has been an invaluable tool in the past.
A Reuters report from back in 2019 notes that the “roll-out of mobile internet nearly a year ago has opened the way for cryptocurrency transactions, and enthusiasts have multiplied as the currency helps overcome obstacles created by U.S. sanctions on Cuba.”
The ReportThe story tells the tale of a local business owner, who used crypto to order parts for his shop’s mobile phone repairs online. These parts were unobtainable in the local economy. Adrian C. Leon, a computer scientist, also highlighted this in the article.
While cryptocurrency may seem like another option to foreigners, it can also be an alternative for Cubans. Cryptocurrencies could prove to be a way of avoiding exclusion from global financial communities.
In the heated discussion about crypto-sanctions and sanctions, Iran has been a topic of hot debate. The 2021 Agenda ReportThe Iranian think-tank Presidential Center for Strategic Studies suggests that new bitcoins can be used for trade purposes beyond geopolitical limitations. This report details:
“As the newly-extracted bitcoins are not easily traceable, despite the pressure of sanctions on the country, domestic economic actors can use newly-extracted cryptocurrencies, which are preferable to existing bitcoins, on international exchanges.”
Draconian calls to suppress Crypto Freedom
That is why countries that are viewed as terroristic in the west media using cryptocurrency to slip sanctions is considered a problem.
“You either need to regulate them or ban them. I don’t think there is a middle ground,” Informed Choice chartered financial planner Martin Bamford stated in an Express Interview Speaking about cryptocurrency tax havens, starting May 2021 He further noted: “A global crypto currency tax or a global crypto currency regulation ban would be the most effective way of doing it, but only if you can get all the countries on board.”
When Bamford was asked which governments might not cooperate, he answered: “Russia, China, or Iran.”
Bamford’s prescription seems to be taking shape and gaining currency (no pun). Just last month, global investment bank JPMorgan’s managing director and head of Regulatory Affairs, Debbie Toennies, declared: “I do think we need a globally consistent regulatory framework. It’s important that we get to a solution as quickly as possible.”
Christine Lagarde, Chief European Central Bank of Europe and the leading central cryptocurrency exchange are two other notable voices calling for global regulation. Binance. Lagarde for her part, however, fell back on the cliché that crypto was the money of criminals. It is possible to state:
“It’s a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity.”
Of course, these arguments have been laid to rest by statistics several times over, with fiat’s financing of illicit activity massively dwarfing Satoshi’s supposed contribution to crime. The problem is that corruption and corrupt lawmakers often define crime, rather than any moral compass.
When we’re dealing with the caliber of folks who proudly state that literally starving 500,000 children to death is “worth it” for sanctions’ sake, we’d do well to take giant step back and reevaluate.
Thus Spoke Satoshi: for Humanity’s Sake
Friedrich Nietzsche, the German philosopher, famously spoke of governments.
The coldest cold monster is a state. Coldly lieth it also; and this lie creepeth from its mouth: ‘I, the state, am the people.’ It is a lie! They were the ones who made people, and they hung faith and love on them. Thus they lived. The destroyers are those who set traps for others and label it the state. They hang a sword over their heads and have a thousand cravings.
That sword, those snares — just look at the SEC. Take a look at the IRS. Consider the central banks all over the world, the governments that they support and the amount of money that they use. These people aren’t the ones Nietzsche refers to as creators. They are the creators of codes and protocols that enable free trade worldwide, regardless of political affiliation.
If the goal of regulators is truly “financial inclusion” and the fostering of innovation while protecting investors, why do they seek so desperately to cut the one promising economic lifeline the poor and struggling of the world have right now, and strangle it with red tape? The answer is obvious, I believe.
Crypto is math and not fear-mongering. It is therefore a danger. It’s a neutral tool like any other. It can be used for good and evil. These technologies can be leveraged in many non-violent ways. They are not subject to state laws and other violence-backed regulations.
Jesse Powell, Kraken’s CEO said it last week:
Focusing on the individual’s needs is the best way to serve our mission. The People’s Money is an exit strategy for humans, a weapon for peace, not for war.
Donate to help those in need. Russia or Ukraine. Anywhere. Even if someone is claiming otherwise. There is no way to stop peer-to–peer electronic currency from moving, other than shutting down the internet. And at that point, we’ll need to finally address some very fundamental elephants in the room, anyway.
Your thoughts about economic freedom and the global environment? Please leave your comments below.
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