Many Venezuelans have fled the country due to its ongoing economic crisis and authoritarian government. The high inflation rate, which is expected to surpass 1 million percent, has made the local currency nearly worthless. As a result, over 3 million people have left Venezuela since 2014, with 5,500 more departing each day. According to the United Nations, this refugee crisis is similar to the one in Syria and is considered one of the worst in the world. Due to these conditions, many Venezuelans are desperate and vulnerable as they leave with few resources. In order to escape hyperinflation and financial controls, some people in Venezuela have turned to using Bitcoin. This cryptocurrency can be a useful tool for those living under authoritarian governments because it allows for a censorship-resistant exchange of funds. However, the potential for speculation, fraud, and greed in the cryptocurrency industry has overshadowed its potential benefits.

One example of the challenges faced by Venezuelans is the issue of remittances, or money transferred from abroad. The Venezuelan government has implemented new laws that require people to go through local banks for foreign transactions and disclose information about how they use and obtain their money. These regulations have resulted in high fees for wire transfers, which can reach up to 56% of the amount being transferred. Additionally, Venezuelan banks, under government pressure, have restricted clients with foreign IP addresses from accessing their online accounts. These measures have had a negative impact on the domestic economy and have made it difficult for people to receive money from abroad.

Bitcoin can be useful for people in other countries facing authoritarian governments and economic crises. For instance, in Zimbabwe, former leader Robert Mugabe printed large amounts of cash, causing the savings of citizens to become worthless. However, his successors cannot do the same with Bitcoin. In China, President Xi Jinping can track financial transactions made through platforms like Alipay and WePay, but he cannot monitor all Bitcoin payments in the same way. In Russia, President Vladimir Putin can freeze the bank accounts of NGOs, but he cannot freeze Bitcoin wallets. Additionally, in refugee camps where traditional banking may not be available, people can use Bitcoin as long as they have an internet connection, without having to ask for permission or prove their identity.

It is important to consider the potential negative impacts of emerging technologies, such as artificial intelligence and big data, which could be used by authoritarian governments to strengthen their power. Some regimes, including those in Venezuela, Iran, and Saudi Arabia, are attempting to centralize and manipulate the concept of peer-to-peer digital currency represented by Bitcoin to create state-controlled cryptocurrencies like the Petro. These cryptocurrencies could allow governments to censor transactions, monitor user accounts, and evade sanctions more effectively. However, decentralized technologies like encrypted communication apps and browsers, privacy-focused cryptocurrencies, mesh networking devices, and censorship-resistant storage systems can provide a countermeasure to these efforts. By supporting and investing in these tools, we can prevent our cities, social networks, and financial systems from being used for surveillance and control.

Cash is often seen as a way to exercise free speech because it is anonymous and not subject to government surveillance. However, in countries like Venezuela where large amounts of cash are needed for even small transactions, it has become impractical and vulnerable to theft or seizure. Governments and companies around the world are also moving towards a cashless society. To preserve the peer-to-peer nature of cash for future generations, it is important to consider electronic money options that do not involve multiple financial intermediaries, which can censor, monitor, and profit from transactions. Payment software like Venmo may not always remain as neutral as it is currently, and people living under repressive regimes may not be able to rely on it in the future. Bitcoin has been described as an “insurance policy against an Orwellian future” due to its ability to provide a decentralized and censorship-resistant means of exchange.

It is important to note that Bitcoin is still a relatively new technology that has room for improvement in terms of usability, speed, and privacy. However, engineers are working to address these issues by developing better apps and entry points for the technology, improving the underlying protocol, and creating second layer technologies like the Lightning Network that could potentially increase the number of Bitcoin transactions that can be processed per second and provide greater privacy. The early stages of Bitcoin’s development are similar to those of the mobile phone, which was initially expensive and had limited functionality, but has become more accessible and user-friendly over time. It is expected that Bitcoin will continue to evolve and become more widely available and easier to use in the future.

Currently, only a small percentage of the world’s population, about 320 million people, own Bitcoin. However, the Human Rights Foundation estimates that over half of the world’s population lives under an authoritarian government. By investing in the development of user-friendly Bitcoin wallets, more exchanges, and educational materials, Bitcoin has the potential to make a significant impact on the lives of the 4 billion people who cannot trust their governments or access the traditional banking system. For these individuals, Bitcoin could be a way to gain financial freedom.