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Bitcoin ‘fixes democracy’ and fights corruption: Human Rights Foundation

Human Rights Foundation CSO argues that Bitcoin represents free speech, property rights and open capital markets — stifling the power of tyrannical governments.

Bitcoin fixes broken democracies and fights government corruption by limiting its power to control its people, argues Bitcoin advocate and chief strategy officer of the Human Rights Foundation, Alex Gladstein.

In a Feb. 20 interview, Gladstein argued that the decentralized nature of Bitcoin (BTC) can act as a barrier against corruption and tyranny.

"Where the democracies have broken down, I do think it's very clearly related to fiat currency, and I do think that Bitcoin fixes this in a way," he said.

Gladstein is the chief strategy officer of HRF and has served the non-profit organization since 2007.  The foundation is focused on promoting and protecting human rights globally — particularly in countries where its people live "under authoritarian rule."

Gladstein also delivers lectures on Bitcoin and the future of money at Singularity University events, according to his bio. 

During the interview, Gladstein said Bitcoin represents free speech, property rights and open capital markets, all of which are stifling to a tyrannical government — which often needs censorship, confiscation and closed capital markets, stating:

"This is what China and Russia need to survive they need censorship, they need close capital markets and they need confiscation, Bitcoin makes it really hard for governments to impose those things on their people."

Both Russia and China have been hostile toward crypto in the past. The Chinese government banned virtually all crypto transactions in 2021; however, the upcoming crypto licensing regime in Hong Kong has led to speculation China's stance on crypto is softening.

Russia’s major crypto law, “On Digital Financial Assets,” officially prohibited the use of crypto for payment purposes in 2020. The law did not ban Russians from investing in crypto, but local crypto exchanges have remained unregulated.

"I don't see these dictatorial powers doing well in a Bitcoin standard; I think it becomes really hard for them," Gladstein added.

Gladstein's argument about crypto has echoed similar views from others in the past. Bitcoin infrastructure provider OpenNode voiced similar opinions in a 2021 post about the benefit that BTC donations had in evading authoritative crackdowns.

"One of the benefits of Bitcoin is its censorship resistance," OpenNode wrote at the time.

"Without any central authority to dictate who can and can't use Bitcoin, it has proven to be the currency of choice for many individuals and organizations who have been left out of traditional payment methods."

According to a February 2022 investigation by blockchain analytics firm Elliptic, one of the biggest reasons for embracing blockchain-based fundraising was to avoid traditional accounts being closed by financial institutions.

Related: Blockchain is the only viable path to privacy and censorship resistance in the 21st century

Gladstein predicts there will be a lot more "trigger moments" in the coming years of people having "technical and liquidity trouble with traditional financial services," which will result in more people shifting to BTC as an alternative.

"If there's a conflict or a breakdown in trade or communications, you're just gonna see a whole hell of a lot of problems, and every single one of those is like a moment that's gonna mint a new Bitcoiner out of necessity," he said.

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60 Organizations Launch Campaign Urging US Congress to Protect Privacy

60 Organizations Launch Campaign Urging US Congress to Protect PrivacyOn Wednesday, 60 organizations involved in cryptocurrencies, open-source and free software, and human rights and privacy-preserving projects launched a new campaign calling on the 118th U.S. Congress to protect privacy. The groups, including Fight for the Future, Electric Coin Co., and the Tor Project, insist that Congress needs to deliver policies dedicated to standing up […]

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Ruby on Rails creator backpedals about Bitcoin: ‘We need crypto’

Ruby on Rails creator makes u-turn on Bitcoin due to Canada’s financial crackdown on COVID-19 vaccine protesters.

Canada’s move to freeze Bitcoin (BTC) wallets and bank accounts related to COVID-19 vaccine protests is driving cryptocurrency adoption, with some crypto naysayers reconsidering their stance on Bitcoin.

David Heinemeier Hansson, the Ruby on Rails web development framework creator, took to Twitter on Monday to tell his followers that he was no longer a Bitcoin skeptic.

“I still can’t believe that this is the protest that would prove every Bitcoin crank a prophet. And for me to have to slice a piece of humble pie, and admit that I was wrong on crypto's fundamental necessity in Western democracies,” Hansson wrote.

In a blog post titled “I was wrong, we need crypto,” the Danish programmer mentioned that he’s been skeptical about Bitcoin and the crypto industry in general since the early 2010s. He noted that some of his biggest arguments against Bitcoin were the cryptocurrency’s energy consumption, transaction fees, the lack of real decentralization, supposed fraud involving Tether (USDT) stablecoin and many others.

But all these arguments do not provide enough reasons to disregard cryptocurrencies as a tool to support freedom and democracy in situations where countries like Canada impose martial law in response to peaceful protest movement, Hansson argued, stating:

“It's clear to me now that I was too hasty to completely dismiss crypto on the basis of all the things wrong with it at the moment. Instead of appreciating the fundamental freedom to transact that it's currently our best shot at protecting.”

Hansson’s transformation from a Bitcoin skeptic to a Bitcoin supporter in response to Canada’s invoked Emergencies Act is another example of the growing crypto adoption fueled by somewhat excessive involvement of the state.

“Tons of falsehoods in this article about bitcoin. But still shows the situation in Canada is going to accelerate bitcoin adoption,” crypto podcaster Neil Jacobs noted.

Morgan Creek Digital co-founder Anthony Pompliano also pointed out previously that authoritarian moves by countries like Canada are “Bitcoin’s marketing team.”

Related: Crypto community condemns Canada for freezing dissidents’ Bitcoin wallets

According to some reports, Justin Trudeau’s financial crackdown on vaccine protesters could have triggered bank runs in Canada amid major banks and ATMs going offline.

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Crypto community condemns Canada for freezing dissidents’ Bitcoin wallets

Kraken’s CEO admitted that the firm could be forced to freeze some wallets by the police, advising to move crypto out of exchanges.

Global cryptocurrency enthusiasts have expressed concerns over Canadian authorities freezing bank accounts and crypto wallets involved in funding local COVID-19 protests.

On Thursday, Ontario Superior Court Justice Calum MacLeod issued an order freezing all the digital assets and bank accounts associated with “Freedom Convoy,” a series of ongoing protests against COVID-19 vaccine mandates and restrictions.

According to a report by the Toronto Star, the amount of funds frozen so far in bank accounts and digital wallets with Bitcoin (BTC) and other assets is estimated at more than $1 million.

“The names of both individuals and entities as well as crypto wallets have been shared by the RCMP with financial institutions and accounts have been frozen and more accounts will be frozen,” Deputy Prime Minister Chrystia Freeland reported Thursday.

She also argued that the Financial Transactions and Reports Analysis Center of Canada (FINTRAC) “lacked the necessary authorities to oversee the new world of cryptocurrency.”

Major crypto advocates have subsequently reacted to the news, with Kraken CEO Jesse Powell condemning Canadian authorities. “Due process is for plebs. Might makes right in Canada. If someone dissents, you just confiscate their wealth, revoke their licenses, exclude them from the financial system and kill their pets. No need to debate the law, policy or even rights when you have a monopoly on violence,” he wrote on Twitter.

Powell also expressed concerns over crypto holders, admitting that it could be possible that Kraken could potentially be forced to freeze assets by police without judicial consent, stating:

“100% yes it has/will happen and 100% yes, we will be forced to comply. If you’re worried about it, don’t keep your funds with any centralized/regulated custodian. We cannot protect you. Get your coins/cash out and only trade p2p.”

Anthony Pompliano, co-founder and partner of Morgan Creek Digital, noted that the ongoing events in Canada very much resembled a situation in China, which is commonly referred to as an authoritarian capitalist state.

Salvadoran President Nayib Bukele also took to Twitter to condemn Canadian authorities for making the country fail as a top-ranking country in the “democracy index.” Bukele argued that the widely reported supposed Ukraine–Russia crisis is a distraction, while the “real war” against freedom is happening in countries such as Canada.

As previously reported, Canadian Prime Minister Justin Trudeau invoked the Emergencies Act on Monday, which allowed local regulators to freeze Freedom Convoy protesters’ bank accounts and monitor “large and suspicious transactions,” including crypto.

Related: ‘Keep Your Coins’ bill introduced to restrict government control of crypto

The order specifically extended the scope of Canada’s Anti-Money Laundering and anti-terrorist financing rules to cover crowdfunding platforms and the payment processors they use. “This change covers all forms of transactions, including digital assets such as cryptocurrencies,” FINTRAC said on Tuesday.

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Indian PM calls for cryptocurrencies to ’empower’ democracy at global summit

Narendra Modi also called for a global standard on cryptocurrencies and major social media platforms in an effort to facilitate free and fair elections and governance.

Cryptocurrency made an appearance at a global online summit for world leaders in a speech from Indian Prime Minister Narendra Modi.

At Friday’s events for the Summit for Democracy hosted by U.S. President Joe Biden, Modi said India would be willing to offer other countries “innovative digital solutions” to facilitate free and fair elections and governance. In addition, the Prime Minister called for a global standard on cryptocurrencies and major social media platforms, likely referring to the impact some have had on politics in India as well as many other countries:

"We must also jointly shape global norms for emerging technologies like social media and cryptocurrencies so that they are used to empower democracy, not to undermine it [...] By working together, democracies can meet the aspirations of our citizens.”
Indian Prime Minister Narendra Modi speaking at Friday's Summit for Democracy

As the Prime Minister of India, Modi represented roughly 1.4 billion people at the summit, the largest democracy in the world by a large margin. His remarks came as the Indian government prepares to consider a bill that could ban certain cryptocurrencies, but also encourage the creation of a digital rupee. 

Different reports have suggested that the legislation is aimed at regulating crypto rather than banning it. The same bill has previously appeared on the Indian parliament’s agenda but has not yet led to a vote. The Reserve Bank of India also had a blanket ban on crypto on the books until March 2020, when the country’s supreme court overturned it.

Related: Lines in the sand: US Congress is bringing partisan politics to crypto

Despite the lack of regulatory clarity in India, Modi has called on countries to work together on crypto and blockchain and urged others to consider the ethics when using the technology. The next general election in India is expected to occur in 2024 when citizens will choose new members for the country’s lower house of parliament.

“It is important that all democratic nations work together on [crypto] and ensure it does not end up in wrong hands, which can spoil our youth,” said the PM in a Nov. 17 tweet.

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Democratic senators oppose President Biden’s OCC Omarova nomination

Saule Omarova’s nomination for Comptroller of the Currency faces policy objections from Democrats and senate banking committee members.

A group of five Democratic senators has reportedly rejected President Joe Biden’s nominee, Saule Omarova, to head the Office of the Comptroller of the Currency (OCC). 

Omarova’s nomination as a bank regulator was initially opposed by three members of the Senate Banking Committee — Senators Jon Tester, Mark Warner, and Kyrsten Sinema — on a phone call with panel chairman Sen. Sherrod Brown, as reported by Axios. The opposition was further supported by Senators John Hickenlooper and Mark Kelly.

Omarova is known for anti-crypto sentiments who has previously worked as Special Advisor for Regulatory Policy to the Under Secretary, Domestic Finance. As a result of the opposition from five Democrats and all Republicans, the White House nominee requires every other Democratic candidate to vote for her appointment.

Senators questioned Omarova regarding her nomination on Nov. 18, including Senator John Ossoff of Georgia, who had specific questions for Omarova about cryptocurrency. Her comments recognized some of the utility that cryptocurrency brings to financial markets, but she focused on the potential for cryptocurrency to undermine the US dollar, aspects of which the Comptroller of the Currency is charged with regulating.

What happens next is one of two things. Either the Biden administration persuades the democratic senators who object to Omarova’s nomination to change their minds, or the administration picks a new nominee for senate confirmation.

In October, Senator Pat Toomey pressured Omarova about her missing Marxism thesis, and in early November, the acting Comptroller of the Currency, Michael J. Hsu, singled out Tether and Binance as risky players in the blockchain space.

Senator Hickenlooper’s Denver office did not immediately respond to Cointelegraph’s request for comment.

Related: Senate Banking Committee chair seeks information from stablecoin issuers and exchanges, suggesting possible hearing

Turning up the regulatory heat, Sherrod Brown, the chair of the Senate Committee on Banking, Housing and Urban Affairs, issued notices that require crypto firms to release information related to consumer and investor protection on stablecoins.

As Cointelegraph reported, Brown’s notice was directed to Coinbase, Gemini, Paxos, TrustToken, Binance.US, Circle, Centre, and Tether, who now require to hand over the requested information by Dec. 03. The crypto businesses will need to share information on purchasing, exchanging and minting stablecoins.

Additionally, the firms are expected to also share the number of tokens in circulation and how often users exchange them for U.S. dollars. According to the senator, investors “may not appreciate the complexity and distinct features and terms of each stablecoin.” According to the letter:

“I have significant concerns with the non-standardized terms applicable to redemption of particular stablecoins, how those terms differ from traditional assets and how those terms may not be consistent across digital asset trading platforms.”

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Texas Democratic Party aims to use NFT sales for fundraising efforts

“We can’t wait to continue turning powerful, exclusive, behind-the-scenes moments into digital assets that help fuel progressive objectives," said Front Row co-founder Parker Butterworth.

Front Row, a marketplace geared towards progressive organizations, has said it will be partnering with the Texas Democratic Party to pilot a program aimed at raising money for candidates and causes using nonfungible tokens.

In an Oct. 11 announcement, Front Row said it had already minted digital images of key moments related to the progressive movement, and listed the nonfungible tokens (NFTs) for sale. Some of the featured NFTs include “wanted” posters depicting conservative Texan lawmakers fleeing the state.

Front Row says that the funds raised through its NFTs will go “directly towards political groups and individuals,” but did not specify how it planned for the digital purchases to be compliant with current campaign finance laws. Under U.S. law, candidates for federal offices appear unable to receive more than $5,800 from a single individual for the sale of one or more NFTs.

“NFTs will become a powerful addition to any political fundraising effort, and the launch of our marketplace will give Democrats across the country a fundraising advantage that its counterparts do not have,” said Front Row co-founder Parker Butterworth, likely referring to Republicans. “We can’t wait to continue turning powerful, exclusive, behind-the-scenes moments into digital assets that help fuel progressive objectives.”

Keeping in line with progressive values, Front Row said it also blockchain platform will strive to be carbon-negative by donating a portion of the NFT proceeds to “carbon capture and reduction” causes. Though the platform is starting at the state level in Texas, it hinted at expanding to national candidates and causes.

Related: Prioritizing humanity ahead of profits through NFTs

Though many local, states, and federal candidates for office in the United States have announced they would be accepting donations in cryptocurrency — likely in a bid to engage younger, tech-savvy voters — NFTs have largely been absent from talks in Congress. 

Cointelegraph reported in August that the current 117th Congress has put forward 18 bills concerning digital assets and blockchain technology in 2021.

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Activists archive Hong Kong pro-democracy newspaper on blockchain

Following a national security probe, pro-democracy Hong Kong newspaper Apple Daily printed its final edition and shut down its website.

Hong Kong cyber-activists are not giving up on the freedom of speech and are backing up articles from the pro-democracy tabloid newspaper Apple Daily using blockchain technology.

Following a national security probe, Apple Daily printed its last edition on Thursday. But Hong Kong activists took it from there and uploaded the publication’s articles on a distributed network, Reuters reported.

21-year-old Ho, an anonymous activist working in tech, started uploading Apple Daily articles on decentralized file storage platform ARWeave this week. Backed by investors like Andreessen Horowitz, the platform deploys a blockchain-like structure called blockweave to enable the permanent storage of files across a distributed network of computers. According to sources, more than 4,000 Apple Daily articles have been uploaded on ARWeave as of Thursday.

Apple Daily is one of Hong Kong’s most vocal pro-democracy newspapers, known as the biggest critic of Hong Kong and Chinese leadership. Last week, police froze the assets of several companies linked to Apple Daily. In addition, they arrested five executives, which led to the tabloid printing its final edition, shutting down its website and erasing all its social media accounts on Thursday.

“I’m not doing this because I love Apple Daily. It’s what needs to be done,” Ho said. “I never thought that Apple Daily would disappear so quickly.”

Related: Global banks reportedly limit service in Hong Kong for political reasons

The people of Hong Kong have previously fought against government censorship using blockchain technology, archiving content by public broadcaster Radio Television Hong Kong through LikeCoin, a blockchain-based decentralized publishing infrastructure.

Since 2009, the crypto and blockchain industry has become a symbol of greater freedom, enabling people worldwide to resist centralized powers by building decentralized networks that are essentially impossible to shut down. Apart from helping to resist state censorship, distributed ledger tech and crypto also empower people with financial freedom.

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Decentralized technology can help protect democracy around the globe

Privacy-focused decentralized and peer-to-peer technology solutions offer a better alternative to centralized platforms.

Recent political developments in the United States demonstrate the critical challenges that centralized technology platforms pose to democracy — in stark contrast to the powerful role social media played in pro-democracy movements in the Middle East and Hong Kong. U.S. election misinformation and disinformation, as well as white nationalism, spread throughout online groups, and prominent political and social leaders found means to amplify falsehoods through technology platforms. 

Within both the public eye and darker corners of the internet, organizers, including members of the Proud Boys, planned the storming of the U.S. Capitol to stop what they believed to be a rigged election. The U.S. events, however, are not isolated. They fit into a broader pattern of centralized social media platforms being used to promote violence, disinformation and insurrection as evidenced in places such as Myanmar and the Philippines.

A byproduct of these events, among others, has been heightened fear that more private decentralized and peer-to-peer, or P2P, technology will offer a new and more powerful tool for domestic terrorists. While these concerns are not unfounded, privacy-focused decentralized and P2P applications can, in fact, protect democratic governance and help us move away from centralized platforms. The key reason is that unlike centralized platforms, they are not in the business of creating echo chambers — targeting users with specific content that suits their interests and potentially amplifying harmful content in order to increase user engagement. This gives us a better way to manage social technology’s impact on public safety, similar to how we’ve previously governed more traditional forms of interaction such as speech, telephone calls and mail.

Centralized platforms

On one hand, the biggest digital media tech companies espouse free speech, but on the other hand, their business model is predicated upon collecting data, creating behavioral profiles and targeting specific content to specific audiences. In the best light, this technical underpinning serves to surface content and services that an individual user would want to see or consume. But more importantly, and of concern to democracy, centralized platforms deliberately seek to get users hooked on the platform through algorithms designed to mass-direct content targeted toward specific audiences. This model allowed Russian intelligence operations to undermine the 2016 U.S. elections through centralized social media platforms, and Islamic terrorist organizations to radicalize and indoctrinate people through YouTube.

Related: Social media giants must decentralize the internet... Now!

After facing public backlash following the Capitol insurrection, the biggest U.S. social media companies stepped in to permanently or indefinitely ban former President Donald Trump’s and others’ accounts. Some have hailed this as a much-needed, minimal show of accountability, especially given how lenient tech companies have been in regard to white supremacy.

I agree that our biggest tech companies did what was needed to protect democracy, albeit in a much-delayed, inconsistent manner. The same calls for regulating social media content, however, are also stoking fears of private and decentralized tech as a new dangerous bogeyman, despite the fact that their business models and technical underpinnings are substantially different.

The case for privacy-focused decentralized and peer-to-peer technology

The key concern of private decentralized and P2P technology is that influential and controversial people who are being regulated on centralized technology platforms will have access to well-designed alternatives with little to no oversight. And this fear is not entirely unwarranted. Telegram, for example, has been found to be a haven for illegal activity and a source of misinformation and hate speech, leading to riots and lynchings in countries such as India. Privacy-focused technology always faces the trade-off between protecting user privacy and ensuring broader public safety and security. The key question, however, is whether democracy and public safety are actually at greater risk if those harmful influencers turn to more novel and private applications.

Privacy-focused decentralized technology solutions offer a better alternative to centralized platforms because their incentives are different. First, designers of privacy-focused applications will find it more difficult to curate content, given the fact that they are collecting little to no data. Second, a P2P design makes it more difficult for users to widely circulate content. This is not to say that decentralized systems entirely prevent users from quickly sending information to many people (e.g., LimeWire), but rather that the outreach is more limited and focused. Furthermore, outreach can be reduced through technical changes, such as limiting group sizes or the ability to forward content.

Dipayan Ghosh, co-director of the Digital Platforms & Democracy Project at the Shorenstein Center on Media, Politics and Public Policy, wrote that regulatory change is sorely needed to “institute the right incentives for companies to act in the public interest without forcing the government to get directly involved in the decision-making process over which kinds of content should be deemed socially unacceptable and as such taken down by the companies.”

While privacy-focused decentralized technology has been historically framed as the means to avoid oversight by Big Brother, it can also fit a broader movement to bolster new regulations, such as changes to Section 230 of the Communications Decency Act. Specifically, private decentralized and P2P technology gives us the ability to turn away from technology platforms designed to surveil, categorize, curate and amplify. The surge in Signal downloads in response to WhatsApp policy changes, for example, demonstrates the growing demand for more private alternatives. Regulation is needed to limit the roles of centralized tech platforms, but it cannot work alone. We need technology to bolster this effort in order and help us realize new technical designs that do not endanger democracy.

Centralized platforms are here to stay. Decentralized and P2P platforms are unlikely to completely replace centralized platforms. To combat extremism, content moderation and regulation will be needed to ensure that centralized platforms live up to the ideals of the internet. An effective way to prevent misinformation or disinformation from spreading out among the public commons is the ability for moderators to quickly disprove and/or block this content in the event it incites violence.

A graver concern around decentralized and P2P platforms is that misinformation and disinformation can continue to spread without the ability for a central body to step in. This is an undeniable challenge. The risk to democracy, however, is dampened by the fact that there is less scope for mass-sharing through P2P and decentralized systems. Research shows that disinformation and misinformation thrive off scale. Removing the targeted outreach and amplification of content can prevent harmful content from proliferating.

Conclusion

American democracy was not undermined and lynchings in India did not happen simply because people communicated misinformation and disinformation through internet technology. This type of information has been circulating well before the creation of the internet, stemming from historical cultural divisions, racism and government failures — see documentation of racial terror in America between the Reconstruction and World War II as an example.

When it comes to the role of technology, we must define the real danger to democracy: centralized technology platforms that enable people to communicate harmful and violent content to a wide audience, and that are based on a business model that directs billions of dollars to magnify content through targeted curation.

Private decentralized or P2P technology poses undeniable dangers, just as the telephone, letters and word-of-mouth. But the beneficial differences between this technology and centralized platforms can be best summarized by the following example: It is illegal for someone to yell “fire” in a theater if there isn’t one, but it is not illegal for that person to falsely tell their neighbor that there is a fire. Private decentralized and P2P applications will be used for illegal activity. But stopping this illegal activity cannot involve infringing on privacy or stopping communication. Instead, we will need to address the underlying causes of these activities.

The Proud Boys storming the U.S. Capitol stems from a history of white supremacy and racial injustice. Violence against Rohingya minorities in Myanmar dates back to the 1950s and a legacy of colonialism. Looking at more privacy-focused technology as the new danger misses the point. Instead of creating a tech bogeyman, we need to address the root causes of misinformation, disinformation and hate speech. And in the meantime, we must regulate our existing platforms and promote alternatives that do not in and of themselves undermine democratic norms.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Nikhil Raghuveera is a nonresident fellow at the Atlantic Council’s GeoTech Center and a project manager at the Equal Justice Initiative. His research focuses on the intersection of technology, social inequality and systems of oppression. Nikhil graduated with an MBA/MPA from the Wharton School and the Harvard Kennedy School. In graduate school, he focused his studies on racial justice, social movements and technology policy.

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