Bitcoin is an online payment method that offers much more. We have PayPal, Venmo and other similar systems. Bitcoin and private cryptocurrency are Cash Internet is a great resource.
Paying someone with paper cash is a great way to do it. No account is required. You don’t need to have a account. This is a bearer device. You have a dollar. You now have the dollar, and I no longer do. The transaction is instantaneous and nobody can get in the way. No one can be trusted to get the dollars to you. It’s also private. This transaction is completely private. There is no record of the transaction.
Despite its many benefits, cash on paper is not useful online. In order to send money over the internet we have to use a network of intermediaries. Our money is in the bank. We then ask that our bank sends money to PayPal. PayPal will send it to a user’s PayPal.
Every company is required to record every step of the process and report it back to the government. We must rely on companies to execute the transaction voluntarily, which is something that history shows should not be assumed.
Venmo is a convenient alternative to paper money, but unfortunately it’s not the only one. Even coffee transactions that were once done with cash have now been recorded, reported and carried out under rules established by the corporations and government.
Commerce now passes through relatively few intermediaries, which gives authoritarians a way to exert pressure on a population to limit what they can do. While this risk may seem distant to us who live in stable democracies with a strong government, the truth is that governments control. financial All states do not support the right to free speech and association.
Bitcoins and other cryptocurrency offer an alternative. These cryptocurrencies are more like money. The bearer instrument can be privately used, without the need for a account. These are internet cash. They also break down the intermediary control over us. financial lives.
Of course, there are valid reasons for governments to want to restrict certain transactions and monitor money flow. In recent years, we’ve seen an increasing number of governments give in to the temptation and weaponize control of their intermediaries as a way to quell political dissent. It is a major flaw in the regulation of finance through intermediaries.
The government reacted swiftly when protests broke out in Belarus due to a rigged vote. financial punishments. The punishments were harsh.
The non-profit BYSOL in Belgium provided a response. financial Protestors are given aid. As the protests had been deemed illegal by authorities, they were not allowed to provide traditional financial Intermediaries, in compliance with law, confiscated protester’s funds and frozen their accounts. Cash and electronic transfers were confiscated. BYSOL has turned to Bitcoin. This allows protesters receive money in their personal wallets. They can also make small exchanges with the locals. financial surveillance.
Donations were made illegal in Russia because Putin’s opponents was considered an extremist group. The same as in any other country. financial They had little choice but to obey the law. The intermediaries were used as a weapon to control political activity. Alexei Navalny’s Anti Corruption Foundation, armed with privacy-enhancing tools like Wasabi Wallet to ensure its survival, turned to cryptocurrency. This powerful tool allows Russians to continue funding their opposition of Putin.
Myanmar’s Junta has implemented strict rules on Know Your Customer and cracked down against physical cash. This forced all economic activity into a monitored system that is prone to account freezings at random. Iran’s new rule would deduct money from women’s bank accounts who do not comply with the Hijab law.
This issue can arise even in the United States. Recently, the Supreme Court ruled that Roe v. Wade It puts abortions at risk. Payment providers may be required to follow the law if funding abortions becomes illegal. They might also have to provide proof to law enforcement. Payments are made by many abortion pill sites using PayPal and Stripe. If these services were to be cut, cryptocurrency would become an important alternative. Similar financial Access to all issues that are hotly debated is threatened. Although it is difficult to control individuals, controlling intermediaries can be done easily.
It’s important to look at another aspect of the intermediary system, beyond their direct control by law. financial system. The private sector is made up of companies with their own systems. own Values and considerations Many of these companies are publically traded. It makes them vulnerable to the public’s whims.
PayPal has a reputation to protect, so why would they take that risk? Even if the industries are legal and deemed unsavory by some. It’s not uncommon for adult creators, marijuana businesses or political outspoken voices to be kicked off of platforms. In the end, they find it easier to simply kick out those individuals so that they can concentrate on their core businesses. Even if all companies make the same calculations, their businesses would be killed.
Cash, whether it is paper or cryptocurrency, remains a neutral system that’s immune to the will of both the authoritarians and the mob. The internet is a cash machine. It’s not necessary to have an account. All you need is a computer with internet access. You can’t tell what they think about you. You are not spied upon by them. No one is allowed to interfere with the ability of you to conduct business with them. These are vital tools to protect our freedom in the digital age. They also act as a check against authoritarianism, which is made easier with a centrally-intermediated internet.
Neeraj Agrawal is the guest blogger for this post. The opinions expressed by the authors are their own. own These views do not reflect the opinions of BTC Inc.
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Source: bitcoinmagazine.com