Cryptocurrency is emerging as a powerful tool in global protests, enabling activists to bypass financial restrictions and fund movements anonymously. While supporters see it as a means of financial freedom, governments view it as a regulatory challenge. The growing role of crypto in protests raises questions about control, transparency, and its long-term implications.
Cryptocurrency as a Tool for Resistance
At the bottom level, cryptocurrencies are decentralized and borderless as well as censorship-resistant. These qualities make them suited to be useful for individuals living under repressive regimes or suffering from economic dislocation. Crypto is a means to transfer wealth and fund protests without interference in places where despotic regimes dictate banking controls.
Funding protests anonymously.
Crypto has helped global protests a fair bit through fundraising. Often, an activist uses donations to fund them. But, in many authoritarian states, they can easily trace money and donations. Sending and receiving crypto has also made it easier to evade government surveillance. During the Hong Kong protests in 2019-2020, protestors had relied on Bitcoin and other cryptocurrencies to fund medical supplies, legal aid, and even bail money for arrested protestors. This method made it impossible for the Chinese authorities to block the inflow of funds through traditional payment channels.
Circumventing Economic Sanctions
Countries like Venezuela and Iran use digital currencies to deal with hyperinflation and global sanctions. People are using digital assets to hold onto their savings and buy essential goods. During Venezuela’s economic collapse, Bitcoin became a popular way for citizens to shield themselves from the dive in value of the bolívar. In the same way, Iranian women who oppose hijab laws are using cryptocurrency to fundraise and escape scrutiny from the authorities.
Empowering Digital Dissent
Aside from money, cryptos facilitate safe communication and planning for protesters. The majority of cryptocurrencies depend on blockchain technology, which guarantees transparency and misinformation. People protesting can use decentralized platforms based on blockchain to communicate, organize, and document abuses of human rights, all without a risk of it being hacked or tampered with.
The Risks Crypto Poses to Governments
Though crypto may give more power to the people and grassroots movements, it is dangerous for governments, especially those trying hard to control their citizens. Here’s how.
Undermining Monetary Control
Central banks and governments have always had incredible power over national currencies, using monetary policy to influence economies and enforce their will. The government provides an alternative monetary system that operates independently. When Nigeria prohibited bank accounts with ties to anti-police violence protests in 2020, the protesters started using cryptocurrencies to receive funds. This demonstrates how cryptocurrencies can challenge a government’s control over financial systems and support protest movements.
Facilitating Illicit Activities
Some people say that cryptocurrencies are often used for illegal activities, including money laundering, terrorism financing, and tax evasion, because they maintain anonymity. Cryptocurrencies can serve numerous beneficial purposes. However, the absence of regulation in these decentralized systems raises questions of accountability. Governments fear that criminals or renegade states may misuse crypto to circumvent sanctions and disrupt countries.
Eroding Trust in Institutions
People are increasingly using crypto as they don’t trust central banks and politicians. When citizens lose faith in their government’s management of inflation, corruption, and civil liberties, they may seek alternatives. This shift makes it difficult for fiscal policies to work because there is less trust in institutions and authorities.
Balancing Innovation and Regulation
The conflicting nature of crypto helped me conclude that a balance of freedoms will be required. On the one hand, stringent regulations risk hindering innovation and estranging citizens who perceive crypto as a means to autonomy. If a large number of individuals worldwide begin utilizing cryptocurrencies without any control, it could lead to catastrophic consequences.
Countries have taken varying measures to tackle this world. El Salvador was the first country to adopt Bitcoin as legal tender in 2021, a move that the government argues will reduce reliance on the U.S. dollar and boost financial inclusion. Across the world, China has regulated crypto trading and mining aggressively, calling it necessary for the safety of finances and to avoid capital flight.
Governments with these issues must collaborate with technologists, economists, and civil society to find a solution. Frameworks that are transparent, non-opaque and promote responsible innovation while addressing the legitimate requirement of security concerns can pave the right way.
A Double-Edged Sword
With riots erupting around the globe, cryptocurrencies will probably continue to be both a symbol of hope and a source of concern. The latest technological development is seen by activists as a more dependable and effective weapon for challenging the system and pursuing justice. It’s been a gradual process, but I’m beginning to feel significantly better!
In the end, how we use—and police—crypto in the coming years will determine whether it is liberating or disruptive. The future of crypto depends on how we use it and how governments regulate it.
