The Financial Freedom Report is a newsletter focusing on the role currency
and banking play in the civil liberties and human rights struggles of those
living under authoritarian regimes. We also spotlight new tools and
applications that can help individuals protect their financial freedom.
Good morning, readers!
This week, we highlight the arrest of Telegram CEO Pavel Durov, who, among many accusations, faces charges related to inadequate content moderation and provision of cryptography tools for its users. Since 2013, Telegram has served as an important organizational tool for pro-democracy activists working under authoritarian regimes.
Further east, residents fleeing Hong Kong with British National (Overseas) passports are facing new obstacles. BNO passport holders were typically able to access their retirement savings upon relocation, but are now being blocked from doing so. This, along with million-dollar bounties placed on the heads of exiled pro-democracy activists, underscores the transnational repression faced by Hong Kong’s human rights diaspora.
In software developments, Bisq 2, a global peer-to-peer Bitcoin exchange, released an update that adds support for Lightning Network settlements, enabling faster and more cost-effective Bitcoin trades for its global user base. Meanwhile, Floresta, a lightweight Bitcoin full node implementation, introduced easier integration with Bitcoin wallets. Users can now run full nodes on the go without needing specialized hardware.
Finally, we’re excited to share a tutorial by Bitcoin educator BTC Sessions, aimed at helping Spanish-speaking users get started with the Coldcard Q Bitcoin hardware wallet to enhance their Bitcoin security. We also feature an article on Silent Payments, a new static address protocol that helps improve financial privacy on Bitcoin.
Now, let’s dive right in!
Telegram | CEO Arrested in France
Telegram CEO Pavel Durov was arrested on Monday at France’s Le Bourget airport on 12 different offenses. Reportedly, these accusations include insufficient content moderation, facilitating illicit transactions, fraud, refusal to disclose information to authorities, and providing “cryptology” tools. Relied on by millions of users in countries ruled by authoritarian regimes, Telegram has been an important platform for pro-democracy activists and human rights defenders to communicate in a way that, so far, is mostly free from government censorship. The arrest raises major concerns. Following this news, the value of decentralized technologies like Nostr becomes even more clear, as they provide a global, censorship-resistant platform for free communication and speech.
Hong Kong | Diaspora Denied Access to Retirement Savings
Hong Kongers in exile are being denied access to $3.8 billion of their Mandatory Provident Fund (MPF) savings. As the Chinese Communist Party tightens its control over Hong Kong, some residents are using their British National Overseas (BNO) passports to move abroad. BNO status is a form of British nationality created in 1987 that offers Hong Kong residents limited rights and a pathway to UK residency. Normally, BNO passport holders who relocate can have early access to their retirement savings plan within the MPF. But they are now unable to do so as Hong Kong officials no longer recognize BNO passports as valid identification. “A lot of Hong Kongers rely on this fund,” Hong Kong Watch reported. “They need the money to start a new life, and the government is blocking it.” This denial of savings, along with bounties issued to exiled pro-democracy activists, highlights the ongoing and transnational financial repression faced by the diaspora.
Nigeria | Prominent Whistleblower (and Bitcoin User) is Missing
Nigerian investigative journalist David Hundeyin reports that PIDOM NIGERIA, a prominent whistleblower known for exposing regime corruption, is missing and that their online accounts are compromised. PIDOM, who used Bitcoin and USDT to avoid government censorship, is presumed to have been targeted by the Nigerian regime. Hundeyin suspects that the regime may have accessed PIDOM’s information through Binance, a digital asset exchange, which either shared or was coerced into revealing PIDOM’s Know-Your-Customer (KYC) details. This case highlights the dangers of requiring extensive personal data through KYC, particularly under authoritarian regimes, where such information can be misused to target and punish whistleblowers and activists. This incident is an important reminder that financial privacy is not a luxury but a lifeline for those living under authoritarian regimes.
Egypt | Raises Electricity Prices by Up To 50%
The Egyptian regime is hiking electricity prices by up to 50% for households as it phases out energy subsidies as part of an agreement to expand its loan program with the International Monetary Fund (IMF) to $8 billion. This hike comes at a time when citizens are already grappling with 26% inflation (driven largely by repeated currency devaluations to meet IMF loan conditions) and the removal of a bread subsidy that quadrupled the cost of bread. These combined policies are pushing millions of impoverished citizens further into despair, all while the dictatorship gets a bailout for its militaristic operations. This example highlights how tyrants are able to borrow in the current international system, pushing the cost onto the public and paying no cost of their own.
Burma | Rising Costs Cripple Households
Burma’s national currency, the kyat, plunged to record lows this week due to the military junta’s destructive economic policies and rampant printing of currency. In just a few days, the kyat has fallen from 5,000 to more than 7,500 per US dollar, leading to sharp price increases for essential goods like food, medicine, and fuel. “It used to cost about 25,000 kyat ($11.94) per week for our household groceries until about a month ago, but now it costs about 40,000 kyat,” reported a resident of Naypyitaw, Burma’s capital. As citizens struggle with skyrocketing prices for basic necessities, the rush to acquire more stable currencies underscores a deepening sense of desperation. A money transfer agent in Thailand observed that “people are frantically buying (Thai) baht and selling kyat.” In addition to the baht, Bitcoin offers support, providing a way to protect financial value and access to global capital markets for those trapped in an “unfair monetary system,” according to Burmese activist Win Ko Ko Aung.
Ghana | Drafts Regulation Guidelines on Digital Assets
Ghana is witnessing a growing popularity of digital assets driven by tech-savvy youth, high mobile and Internet usage, and a 21% inflation rate eroding citizens’ purchasing power. In response, the Bank of Ghana released draft regulations that establish a framework for the digital asset industry. This framework will require Virtual Asset Service Providers (VASPs) to register with the central bank, increasing government oversight and control over digital asset transactions. Moreover, the Financial Intelligence Center will require all VASPs to report “suspicious” activity, which could lead to monitoring or flagging transactions based on unclear criteria. While governments claim to want to “modernize financial systems,” putting new forms of money over increased state control and oversight creates an even bigger surveillance state.
Bisq 2 | Adds Support for Lightning Network Settlements
Bisq 2, a peer-to-peer Bitcoin exchange and successor of Bisq, introduced support for Lightning Network settlements. Users can now settle Bitcoin trades faster, more privately, and at a lower cost. The latest update also includes a QR code scanner, making it easier to input Lightning Network addresses and invoices. Decentralized exchanges like Bisq enable users worldwide to buy and sell Bitcoin without requiring proof of identity, a bank account, or centralized intermediaries. In light of recent events, such as PIDOM Nigeria’s case above, which underscored the risks of using centralized platforms that collect extensive personal data, Bisq offers a vital solution for activists and privacy-conscious individuals. It enables them to access KYC-free Bitcoin, reducing the risk of being targeted or censored.
Floresta | New Release Makes Running Full Nodes More Accessible
Floresta is a lightweight Bitcoin full-node implementation powered by Utreexo. (A Bitcoin node is a computer that validates and relays Bitcoin transactions and stores a copy of the Bitcoin ledger, ensuring the network’s integrity and consensus.) Recently, it introduced libflorestad — a tool that facilitates easier integration of Floresta into Bitcoin wallets. Created by HRF grantee Davidson Souza, Floresta aims to “create a node implementation that offers full security and privacy while significantly reducing the resource requirements compared to traditional full nodes like Bitcoin Core.” This update makes it easier for users to run full nodes wherever they go without needing specialized hardware or technical expertise. This development is long-awaited and will be important for enhancing Bitcoin’s decentralization and security.
SeedSigner | Adds Support for Legacy Bitcoin Addresses
Seedsigner, an air-gapped (meaning not connected to the Internet) Bitcoin hardware wallet made with affordable and publicly available hardware, released v0.8.0. This update introduces support for older Bitcoin transaction types — including Pay to Public Key Hash (P2PKH) and Pay to Script Hash (P2SH) — enhancing compatibility across older systems. Additionally, the update brings user-friendly improvements, such as a smoother QR code scanning interface, faster QR code reading for wallets, and improved experience when entering BIP-39 passphrases (an advanced security measure that gives users the ability to apply a passphrase to their seed phrase and create a new wallet in the process). Seedsigner offers an affordable option for activists to build their own customized hardware wallet at inexpensive prices. HRF is a proud supporter of SeedSigner and its efforts to advance financial independence.
Fountain | Integrates Nostr Into Podcasting Platform
Fountain, a podcast app powered by the Bitcoin Lightning Network, integrated Nostr, a decentralized social protocol, into its platform. With this update, Fountain users can now create or connect a Nostr profile and opt to share their boosts (similar to likes) and comments directly to Nostr. The update also introduces zaps (bitcoin micropayments) to allow listeners to send small amounts of bitcoin directly to podcasters without going through a third party. By integrating Nostr, Fountain is helping create a more decentralized, open, and censorship-resistant podcasting experience for journalists, educators, and activists. To give an example, one could be based in any country, put out audio content, and receive financial support from one’s audience, with no government able to stop the creator. You can try Fountain here.
OpenSats | Long-Term Support for Vitor Pamplona
OpenSats, a public nonprofit funding free and open-source software and projects, announced long-term support for developer Vitor Pamplona. Pamplona is known for his work on Nostr, particularly the Amethyst Nostr client, which makes it easy to access Nostr on Android phones. With this support, Pamplona will continue improving Amtheyst and work on other projects like Sheetstr, a collaborative spreadsheet client for Nostr, and Crafters, a Nostr-based resume builder. These applications not only enable more collaborative work, secure data sharing, and the ability to build professional profiles, but they also help expand Nostr’s utility. In light of the Telegram news, the proliferation of Nostr clients that allow users to control their own data, identity, and preferences is critical.
Btrust Builders | Upcoming BitDevs Meetup
Btrust Builders, a nonprofit advancing Bitcoin development in the Global South, is hosting their next BitDevs meetup at the Fairtrade Business Complex in Abuja, Nigeria, on Saturday, Aug. 31 at 4 p.m. WAT (West Africa Time). This event is a great opportunity for those in the area to dive deeper into the latest Bitcoin developments, expand their technical knowledge, and connect with the local Bitcoin community. If you’re in Abuja, don’t miss this opportunity to be part of the conversation and network with other Bitcoin developers. You can RSVP here. HRF is proud to support local meetups and developers like this one in the Global South and in difficult political climates worldwide.
Recommended Content
Coldcard Q Wallet Tutorial in Spanish by BTC Sessions
Renowned Bitcoin educator Ben Perrin, known as BTC Sessions, released a tutorial in Spanish to help users get started with the Coldcard Q Bitcoin hardware wallet. This tutorial guides users through setting up and using the Coldcard Q as a secure cold storage solution for long-term savings. For activists in Latin America looking to enhance their Bitcoin security, this tutorial is a valuable resource. HRF is pleased to support the translation of BTC Sessions’ educational tutorials, helping Spanish-speaking activists understand how Bitcoin helps them achieve financial autonomy, continue their activism, and take control of their funds. To learn more, BTC Sessions will be hosting a three-day long webinar series in partnership with HRF from Nov. 4-6, focused on helping nonprofit organizations get started with Bitcoin. Register for the webinar series here.
Silent Payments Are Coming To Better Protect Bitcoin Users by Henry Fisher
In this article, digital rights activist Henry Fisher explores the increasing adoption of Silent Payments in the Bitcoin ecosystem. Silent Payments is a privacy protocol that allows Bitcoin transactions to be made through a single static address, which automatically creates new, unique Bitcoin addresses for each payment. This ensures that both senders and recipients can keep their financial activities private without revealing them to the blockchain. Fisher explains how Silent Payments can be especially useful for activists and organizations in authoritarian countries where financial privacy is critical. But he notes that the effectiveness of Silent Payments depends on whether wallets will adopt this functionality. Read the full article to learn more about Silent Payments and how it can enhance financial privacy here.
Webinar Series: How to Use Bitcoin for NGOs
HRF will host a three-day webinar designed specifically to teach human rights defenders and nonprofit organizations how to integrate Bitcoin into their work to challenge state censorship and confiscation. From Nov. 4-6, 10:30 EDT to 12:00 EDT daily, participants will learn what Bitcoin is, how it counters financial repression, how to make payments, and how to maintain financial privacy under surveillance regimes. If you’re an activist or a nonprofit organization, we invite you to apply here.
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