Crypto Philanthropy: Supporting Freedom in Authoritarian States

Crypto philanthropy is an interesting yet somewhat controversial topic, especially for those of us living in a world where financial freedom is often restricted by authoritarian regimes. Today, I want to share my thoughts on how decentralized cryptocurrencies like Bitcoin offer a chance for people to escape economic oppression, particularly through organizations like the Human Rights Foundation (HRF), which offers grants to emerging crypto projects focused on decentralization and privacy. There are stories of individuals who stand against the odds to help create a fairer financial ecosystem, but there are also challenges along the way.

The Role of Crypto Philanthropy

Crypto philanthropy is where decentralized cryptocurrencies come in. They enable financial transactions that are anonymous and secure, which provides a lifeline for people and communities hoping to escape repression. By leveraging decentralized cryptocurrencies like Bitcoin, crypto philanthropy allows for donations to be made without state interference or surveillance, especially vital in authoritarian regimes.

The Potential and Limitations of Crypto Philanthropy

Financial Freedom and the Power of Dissent

For those living under oppressive regimes, decentralized cryptocurrencies enable financial transactions outside of government oversight. This is crucial for dissidents, helping them save and transact money without fear of surveillance. There have been instances where dissidents mobilized funds via Bitcoin to escape state-imposed controls. However, while cryptocurrencies offer a degree of financial independence, their impact can be limited.

Tools for Democracy

The decentralized tech of cryptocurrencies also provides secure, anonymous communications and verifiable voting systems to support democratic movements. For instance, Rarimo's “Freedom Tool” uses zero-knowledge proof technology allowing anonymous voting. Meanwhile, the risks remain high—whether it's for dissidents fearing retribution or for the very technologies being utilized in the first place.

Human Rights and the Need for Anonymity

Crypto philanthropy offers a way to protect human rights as well. Donors can remain anonymous in their contributions, particularly relevant for those living in oppressive governments where conventional financial systems are used to control and surveil.

Perception of Crypto Philanthropy by Authoritarian Regimes

Of course, authoritarian regimes often see decentralized cryptocurrencies as a threat. Countries like China and Russia have made attempts to ban or heavily regulate them to maintain control over public finances.

Evasion of Sanctions

There’s also concern over how individuals within authoritarian regimes use cryptocurrencies to avoid sanctions. Nations like Russia, Iran, and North Korea have successfully circumvented international sanctions through this medium.

The Bitcoin Development Fund of HRF

The Human Rights Foundation (HRF) recently allocated 7 BTC to 20 projects worldwide through its Bitcoin Development Fund. This initiative aims to improve the Bitcoin Ecosystem—especially in areas with oppressive governments. Each recipient receives an undisclosed share of the total 7 BTC, roughly $706,000, with an emphasis on promoting decentralization and privacy.

Examples of Funded Projects

For example, the fund backs open-source software projects like the Stratum V2 Reference Implementation (SRI) and Public Pool, as well as initiatives for Bitcoin Core and education in its use.

Notable Beneficiaries: Emerging Crypto Projects

Naiyoma: First Female Bitcoin Core Developer from Africa

Naiyoma is the first female Bitcoin Core developer from Kenya, a country with its own experiences of electoral authoritarianism. She aims to create a transparent, fair financial system through her contributions to Bitcoin Core, with funds expected to support her work.

Daniella Brozzoni: Advancing Bitcoin Core

Then we have Daniella Brozzoni, another developer who worked on the Bitcoin Development Kit (BDK) now advancing Bitcoin Core. Her work centers around reviewing pull requests, contributing to Bitcoin’s robustness, and improving its security.

The Duality of Crypto Fundraising

Risks vs. Benefits

There are undeniable risks and limited benefits in supporting crypto projects in oppressive regions. Risks include potential illicit activity and circumvention of capital controls, making this fundraising difficult to regulate. Systemic power differences can also mean that the supposed benefits may only trickle down to a few.

Alternative Crypto Solutions

While Bitcoin offers some hope, its effectiveness can be hampered by surveillance and off-ramping challenges, suggesting that there’s potential in exploring other cryptocurrencies with better privacy and decentralization. However, the intersection of technology, politics, and power is complex.

Summary

Crypto philanthropy is a powerful concept for promoting financial freedom and human rights in oppressive regimes. The HRF's Bitcoin Development Fund shows how decentralized cryptocurrencies can empower those living under authoritarian controls. As we look ahead, continued support for crypto projects and exploration of alternatives will be essential for furthering financial freedom and human rights worldwide.