HRF’s Weekly Financial Freedom Report #16

Hungary | Power Grab of Central Bank & Civil Rights Groups

Hungarian Prime Minister Viktor Orbán has launched a feud with the country’s central bank, the Magyar Nemzeti Bank (MNB), as he seeks to expand oversight over the MNB ahead of both the European Union (EU) and local elections later this year. Orbán has pushed for interest rate cuts to stimulate the economy and proposed reforms to the central bank, which the MNB believes are aimed at influencing its decision-making autonomy. To add to this power grab, Orbán has established a new agency, the Sovereignty Protection Office (SPO), which targets politicians, activists, journalists, and civil rights groups that receive US funding. Critics view this as a crackdown on dissent reminiscent of tactics employed by Russia. Political activist Márton Gulyás compared the SPO to “a locked and loaded weapon on the table” that Orbán can wield or threaten critics with. “It can be used in a coordinated government attack any time.” Orbán’s efforts to increase control over both the central bank and dissenting voices raise concerns about the erosion of democracy in the country.

Haiti | Prime Minister Resigns

Earlier this month, Haitian gang leader Jimmy Cherizier launched an attack against acting Prime Minister Ariel Henry, threatening a “civil war that will lead to genocide” unless Henry resigns. Gangs targeted critical infrastructure (i.e., airports), orchestrated prison breaks (plus the release of more than 4,000 inmates), and seized control of the country. Henry, whom many Haitians consider corrupt, has led the country on a supposed interim basis since July 2021, postponing elections over security concerns. He announced his resignation on March 1 after Haiti’s complete societal collapse. Haiti’s history is marred by hardships, from forced “reparations” paid to France after its independence to the Duvalier dictatorship, flawed international interventions, and natural disasters. The country might be cut off in many ways from the international financial system, but Flash — a Bitcoin and Lightning wallet that lets people in the Caribbean receive, save, and spend bitcoin — is set to launch this year, providing a way out.

Belarus | Detention of Lawyers Helping Prisoners of Conscience

Authorities in Belarus detained at least 12 lawyers who provided legal assistance to prisoners of conscience and their families. Notable for a country with a population of 9.5 million, hundreds of thousands came onto the streets when dictator Alexander Lukashenko rigged elections and seized a sixth presidential term in 2020. Lukashenko then detained more than 35,000 people, many of whom were tortured, forced to flee, and labeled as extremists. Now, human rights lawyers are being detained, losing their law licenses, leaving the profession, and fleeing the country. NGOs have also been targeted financially, with the government freezing the bank accounts of dissidents and those who aid them. Bitcoin has played a significant role in funding the opposition over the past few years, and new innovations like Lnp2pbot help Belarusians transact in a currency that Lukashenko can’t control.

Senegal | New Currency Promised

Bassirou Diomaye Faye, leader of the Senegalese opposition party, PASTEF, promised to introduce a new currency as part of his presidential campaign. “Convinced that full independence cannot be achieved without controlling the economy,” he said, “we are fully committed to achieving food, digital, fiscal, energy and scientific sovereignty.” It is understandable why West African leaders would want to leave the colonial CFA franc currency behind, but a new Senegalese currency would be prone to abuse by the country’s ruling elite. In the face of these uncertain times, some Senegalese have begun exploring Bitcoin adoption. HRF has supported the regional annual event, Dakar Bitcoin Days, which showcases a vibrant community of local organizations and entrepreneurs building a new economy beyond the control of local authoritarians and foreign influence.

El Salvador | Government Reveals Bitcoin Address

Last week, the president of El Salvador, Nayib Bukele, disclosed the Bitcoin address to the bitcoin the state authorities have been amassing over the last few years. According to his X post, the address holds a sum of 5689 bitcoin valued at approximately $400 million (at the time of publishing). Salvadorans can now audit this portion of the country’s reserves and monitor transactions to and from the wallet. Despite this positive step, many questions remain unanswered, including: Where is the other money? Who holds the private keys to the wallet and thus has access to these funds? These funds are taxpayer money, and NGOs and journalists inside El Salvador continue to push for answers in an increasingly authoritarian environment.

Lebanon | Rising Bitcoin Adoption

Decades of mismanaged fiscal and monetary policy have led to a staggering 98% depreciation of the Lebanese pound since 2019. Regional analyst Mike Azar argues that “the damage caused by the currency crisis is irreparable.” For those who have lost faith in the local currency system, mining bitcoin has become a source of income. For others, Telegram groups have become the place to connect and exchange stablecoins like Tether for USD to buy groceries. Lebanon grapples with triple-digit inflation, rampant corruption, a lack of essential services, and restricted access to dollars. It’s no surprise that Bitcoin adoption continues to rise and that citizens continue their search for money that works even under dire circumstances.