HRF’s Weekly Financial Freedom Report #30

Kenya | Protests Lead to Reversal of Tax Plan

Thousands of young Kenyans protested a new tax proposal by a desperate regime that would have bailed out the government while making life tougher for the average person. The proposal included a 2.75% income levy and increased taxes on essential items like vegetable oil and fuel. Law enforcement responded to these protests with tear gas, arrested more than 200 protesters, and killed 39 people. Ashley Mwai, a young Kenyan woman, voiced the frustrations of many: “Our parents have been taxed dry, yet there’s no development to show for it. We reject any additional taxes and will stay on the streets for as long as it takes.” Kenyan Bitcoin advocate Noelyne Sumba highlighted that the resistance to the tax proposal reflects deep-seated frustration stemming from decades of economic oppression and exploitation in the country. This is why she advocates for alternative financial solutions outside the control of governments, like Bitcoin, as a path to Kenyans’ financial independence. Kenyan President William Ruto ultimately reversed the proposed tax hikes, marking a short-term victory for the people of Kenya.

Burma | Bans Use of VPNs

Burma’s military junta banned the use of many virtual private networks (VPNs), including Nord and Psiphon. VPNs are crucial for bypassing digital censorship and ensuring secure and private access to social media, messages, and websites. This ban intensifies the regime’s existing practice of shutting down the Internet to cut off the Burmese people from the rest of the world and hinder their access to information and communication. It also restricts citizens’ ability to report ongoing human rights abuses and express dissent against the regime. This move follows a recent ban on trading and exchanging Bitcoin. Burmese citizens find themselves isolated from the rest of the world and subjected to repression — not just through the ban on VPNs but also through their inability to access global, neutral, and digital money.

Bolivia | “Attempted” Coup Amid Economic Distress

On June 26, armored vehicles led by the former commander general of the armed forces, Juan José Zúñiga, stormed the government palace in La Paz. This prompted President Luis Arce to declare a coup. International support quickly followed, with calls for the protection of constitutional order. Not everyone, however, believes this was an actual coup attempt, but rather a gambit to boost Arce’s popularity. One reason for the skepticism is that during his arrest, Zúñiga told the media that President Arce had ordered the military mobilization, detailing the numbers and types of vehicles to be used, “because he needed actions to boost his popularity.” Currently, 80% of Bolivia’s population disapproves of Arce’s government. Under his government, Bolivians face shortages of basic goods, while restrictions remain imposed on foreign currencies and Bitcoin.

Zambia | Plans to Introduce Restrictions on Foreign Currency

Zambia plans to introduce regulations restricting the use of foreign currency to combat growing inflation, which currently exceeds 15%. If implemented, these restrictions would force citizens to rely more on the kwacha, a local currency that has lost 28% of its value over the past year and is considered among the world’s worst-performing currencies. To protect their purchasing power in high-inflation environments, Zambians turn to more stable foreign currencies like the US dollar. By mandating the use of the rapidly depreciating kwacha and restricting the use of foreign currencies, the regime exacerbates the financial hardships that 20 million Zambians already endure. By preventing citizens from choosing a better kind of money, the government is imposing a cruel form of financial repression on the population.

Gaza | Bitcoin Donations Help Desperate Civilians

Palestinian taxi driver Yusef Mahmoud began using Bitcoin to buy critical resources for civilians trapped in war-torn Gaza. “Bank apps on our phones are down, and banks are freezing accounts in Gaza. We only have cash or Bitcoin,” Mahmoud said. He soon launched a project on Geyser, a global crowdfunding platform, to fund food, baby supplies, medicine, clothing, potable water, and tents for displaced civilians. Bitcoin donations from around the world, amounting to more than 260 million satoshis (roughly $146,000), empowered Mahmoud to care for more than 20,000 struggling families in Gaza. Mahmoud’s story is an excellent example of how Bitcoin facilitates borderless, global crowdfunding initiatives despite government-imposed financial restrictions, even, surprisingly, in war-torn places and conflict zones. With bank accounts routinely frozen, Hamas exerting complete control, and financial services consistently shuttered in Gaza, “You can see why more people over here are now using Bitcoin; there’s no other way,” Mahmoud explained.

Mali | Opposition Activists Arrested and Jailed

In Mali, the military junta arrested 11 opposition politicians during a meeting in a private residence and sent them to prison. The regime charged the opposition members with conspiracy, opposition to the government, and breach of public order, but it hasn’t tried them yet. “We denounce the crackdown on the opposition politicians in Mali, the dissolution of political parties, and the suspension of all political activities,” Amnesty International said. In addition to imprisonment without fair trials to tame the opposition, authorities have imposed financial repression on media outlets, particularly those critical of the government, freezing their bank accounts. It has also applied financial surveillance to civil society organizations. This has created a climate of self-censorship among media outlets and civil society organizations. The ongoing repression showcases the junta’s efforts to stifle any opposition and criticism by exerting control over the finances of these organizations.