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, authoritarian regimes continued to use financial repression tactics to target dissidents and opposition movements. In Nicaragua, the National Assembly unanimously approved a reform allowing the regime to prosecute and seize the assets of exiled citizens. Following this approval, dictator Daniel Ortega stripped 135 political prisoners of their citizenship and seized their assets.
Meanwhile, the Nigerian regime has detained digital asset exchange Binance employee Tigran Gambaryan for six months, denying him medical care and legal counsel despite facing deteriorating health. Officials are ostensibly using him as a scapegoat, blaming Binance and Bitcoin for the naira’s collapse instead of addressing their disastrous economic policies, which include massive corruption and a surge in money printing that has driven inflation to 30-year highs.
On a brighter note, HRF announced its latest round of Bitcoin Development Fund (BDF) grants. The fund is gifting 1 billion satoshis to 20 open-source projects focused on supporting Bitcoin privacy, decentralization, access, and education in regions under authoritarian rule. These grants aim to strengthen financial freedom and human rights for dissidents and vulnerable populations. Additionally, Blitz Wallet, an open-source Bitcoin Lightning wallet, now supports ecash, significantly enhancing privacy for smaller transactions — essential for those living under heavy surveillance.
We end with a new video from Reason — narrated by HRF — exploring how Nostr, a decentralized social media protocol, offers hope for free speech amid increasing online censorship. We encourage you to watch the five-minute video and learn how this open-source technology can serve as a vital tool for de-platformed and censored activists and dissidents worldwide.
Now, let’s dive right in!
Nicaragua | Strips Citizenship and Confiscates Assets of Nicaraguans
As part of its ongoing crackdown on dissent and civil society, Nicaragua’s regime arbitrarily revoked the citizenship of 135 exiled political prisoners and confiscated all their assets. These individuals stand “convicted of criminal acts” against the “sovereignty, independence, and self-determination” of the country, all trumped-up charges frequently used by the regime against political opponents. This follows the Nicaraguan National Assembly’s approval of a new law that empowers the regime to prosecute and confiscate assets from exiles as a punishment for their “crimes” of resisting an oppressive regime. Christian Salazar Volkmann, head of the UN High Commissioner for Human Rights, warns that “these reforms could be used to intensify persecution and repression even more against Nicaraguan people.” As the regime turns to financial confiscation to line its own pockets, exiled Nicaraguans are left unable to return home and forced to rebuild their lives elsewhere.
Nigeria | Uses Binance Employee as a Scapegoat for Currency Crisis
Nigerian officials are using repression to deflect blame for the collapse of their currency, the naira, by arbitrarily detaining individuals like Binance employee Tigran Gambaryan. The regime has charged Gambaryan and Binance with tax evasion and money laundering, arguing that “Binance is operating virtually. The only thing we have to hold on to is this defendant.” For six months, Gambaryan has been unjustly detained without access to proper medical care, a wheelchair, or legal counsel despite suffering from malaria and a herniated disc. Nigerian officials claim that Binance and digital assets like Bitcoin are responsible for the naira’s decline, arguing that they facilitate capital flight out of the local currency, exacerbating its devaluation. In reality, the naira’s money supply growth of 76.4% in the past year, combined with massive corruption, are the real reasons for currency collapse.
Cuba | Mass Migration in Search of Financial Freedom
Cuba faces a mass exodus as citizens flee authoritarian rule and perpetual economic collapse. Since 2022, the population has declined by 18%, with young workers leading the charge. “We are losing both our population and our young people,” noted Cuban demographic expert Antonio Aja. This “migratory stampede” follows deteriorating living conditions, including power outages up to 18 hours a day (which sparked protests), food shortages, and a five-fold increase in fuel prices, leaving Cubans struggling to make ends meet. The Cuban peso has collapsed in purchasing power, devaluing by more than 90% against the dollar in the past few years. The exodus of youth is more than a demographic shift — it is a devastating loss of potential for Cuba’s future. As citizens rightfully seek stability and opportunities abroad, they leave behind a nation in decline.
Pakistan | Escalates Suppression of Opposition Party
Pakistan faces the highest cost of living in Asia, with 25% inflation driving up prices of essential goods and propelling millions further into poverty. Instead of addressing these challenges, Pakistan’s military-backed regime is cracking down on opposition figures, detaining and charging several lawmakers from former Prime Minister Imran Khan’s party, Pakistan Tehreek-e-Insaf (PTI), and charging them with terrorism for protesting Khan’s imprisonment. Khan, ousted after a fallout with military generals, has been imprisoned since 2022. The current regime, under Shehbaz Sharif, has strengthened military ties and sought IMF bailouts to manage its surmounting debt. Pakistanis continue to be crushed under the weight of an authoritarian regime whose objectives are at odds with citizens’ financial recovery.
Bolivia | Inflation Reaches a Decade-High
Bolivia’s inflation reached 5.19% in August, marking a decade-high and driving up the cost of essential goods like rice, chicken, and tomatoes. “Prices have increased by 70%. Our salaries are no longer enough to go to the market,” Indigenous leader and activist Jorge Cucho said. Protests have erupted over rising costs, fuel scarcity, and US dollar shortages caused by Bolivia’s dwindling foreign reserves. Merchants are forced to buy US dollars at inflated prices from neighboring countries to keep their businesses afloat. “The government doesn’t listen. That’s why we’re in the streets,” Roberto Ríos Ibáñez, head of the Confederation of Merchants, said. Meanwhile, internal conflict between President Luis Arce and former president (and ally) Evo Morales has stalled government action, leaving Bolivians facing an uncertain financial future.
SuperTestnet | Introduces Brick Wallet
Bitcoin developer SuperTestnet launched Brick Wallet, a simple, web-based Lightning wallet for Bitcoin transactions using Nostr Wallet Connect (NWC), an API for managing Lightning wallets. Users must connect Brick Wallet to a back-end server that supports NWC, such as Bankify. After that, the wallet allows users to send and receive transactions without needing specialized software. This lowers the entry barriers to using the Bitcoin and Lightning ecosystems. Future updates will support LNURL for base layer transactions and Lightning address integration, expanding SuperTestnet’s already extensive contributions to Bitcoin software.
SimpleX | Privacy-First Messenger Blocked in Russia
SimpleX, an open-source messaging platform, was recently blocked in Russia due to the privacy and security it provides users. Unlike traditional messaging apps, such as Signal, that require phone numbers or emails, SimpleX uses pairwise addresses (temporary unique identifiers), making it harder for servers or third parties to track communications. With end-to-end encryption, SimpleX allows users to securely exchange messages, files, and media, providing a vital tool for those living under surveillance-heavy regimes like Russia.
HTX | Integrates Lightning Network
HTX (previously Huobi), a global digital asset exchange, integrated the Bitcoin Lightning Network in a strategic partnership with IBEX, a company building on Lightning. With this integration, HTX users will enjoy faster transactions, increased privacy, and lower fees when transacting in Bitcoin. HTX and IBEX will also explore other application scenarios, including payments, transfers, and settlements. These enhancements will help its users across over 180 countries take advantage of the financial freedom offered by open-source technology. This upgrade marks yet another major step forward for Bitcoin’s Lightning Network.
Blitz Wallet | Integrates Ecash for Small Payments
Blitz Wallet rolled out its v0.2.7 beta update, integrating ecash into its self-custodial and open-source Bitcoin Lightning wallet. This update enables users to make payments of up to 1,000 satoshis using ecash (a privacy-focused digital money system backed by Bitcoin that, while custodial or federated, offers instant, fee-free transactions). Larger payments made on Blitz will default to the Liquid and Lightning Networks. In addition to integrating ecash, Blitz also supports anonymous SMS and multiple protocols (including Lightning and Liquid). Blitz could be a helpful Bitcoin wallet for anyone living under heavy financial restrictions.
OpenSats | Announces Long-Term Support for Mike Dilger and Jason Donenfeld
OpenSats, a nonprofit funding free and open-source software and projects, announced long-term grants for Mike Dilger and Jason Donenfeld. Dilger, the lead developer of Gossip, a privacy-focused Nostr client, will continue improving the platform with features like event replies and file upload support. He plans to implement advanced features like Blossom to allow users to store data on publicly accessible servers. OpenSats will also support Donenfeld, the creator of the WireGuard VPN protocol and the primary author of the Linux kernel’s random number generator (RNG). Donenfeld’s contributions are critical for securing transactions in the Bitcoin ecosystem and maintaining cryptographic robustness.
HRF | Gifts 1 Billion Satoshis to 20 Open Source Projects Worldwide
HRF donated 1 billion satoshis to 20 open-source projects in its latest rounds of grants through the Bitcoin Development Fund. These grants support technical education for those living under authoritarian regimes; initiatives to decentralize Bitcoin mining; and strengthening financial privacy tools for dissidents. The projects are located across Latin America, Asia, and Africa. By funding these initiatives, HRF aims to help at-risk individuals and organizations seize their financial freedom to keep their work and operations going, even if dictators want them to stop.
Learn more about the grantees and the projects they’re working on here.
Recommended Content
Is Nostr an Antidote to Social Media Censorship?
In case you missed it Wednesday, a new video by Reason and HRF explores how Nostr, a decentralized social media protocol, can offer a solution to global online censorship. Unlike X and Facebook, which can be vulnerable to government pressure, Nostr has no central authority or single point of failure. Alex Gladstein, HRF’s chief strategy officer, asks, “What if there was a social media platform owned not by Mark Zuckerberg, Elon Musk, or the Chinese Communist Party, but by everybody and nobody all at once?” Nostr’s decentralized network allows users to communicate freely without censorship and without having to surrender control of their data, making it a unique communications tool for activists. Watch the video to learn more about the benefits of Nostr.
Why Kenyans Need Bitcoin Now More Than Ever by Bitcoin DADA
Bitcoin Dada, an HRF grantee and nonprofit initiative empowering African women through Bitcoin and financial education, shared a new article titled “Why Kenyans Need Bitcoin Now More Than Ever.” The article argues that Bitcoin offers a hedge against growing inflation, enhances financial inclusion for the unbanked, and reduces remittance costs for Kenyans. Bitcoin DADA believes that Bitcoin can provide Kenyans with financial resilience and greater independence from traditional financial systems during increasingly turbulent times. You can read the full article here.
Webinar Series: How to Use Bitcoin for NGOs
HRF will host a three-day long 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 surveillant regimes. If you’re an activist or a nonprofit organization, we invite you to apply here.
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The Bitcoin Development Fund (BDF) is accepting grant proposals on an ongoing basis. The Bitcoin Development Fund is looking to support Bitcoin developers, community builders, and educators. Submit proposals here.