HRF’s Weekly Financial Freedom Report #49

Pakistan | Proposes Regulatory Framework for CBDC

Pakistan’s military-backed regime proposed amendments to the State Bank of Pakistan Act (SBP), ostensibly paving the way for introducing a central bank digital currency (CBDC). The amendments would grant the central bank the power to issue digital currency and conduct “CBDC business” while also introducing financial penalties for unauthorized digital currency issuance. This comes at a time when Pakistanis are already struggling with severe inflation and economic instability. On top of this, Internet censorship, mobile suspensions, and financial repression are routinely used to suppress protests and dissent. With financial activity under the purview of a repressive government, a CBDC could only serve to worsen state corruption, surveillance, and repression.

Mozambique | Protests Over Election Results Extending Frelimo’s Half-Century Rule

Protests are erupting across Mozambique after disputed election results handed the ruling Frelimo party another term. Frelimo’s half-century rule, marred by financial corruption, has left Mozambique one of the world’s poorest countries. Facing surmounting financial struggles, citizens took to the polls, but official counts awarded Frelimo’s Daniel Chapo 70.7% of the vote. Allegations of electoral fraud spread quickly, with the opposition accusing the ruling party of ballot-stuffing and registering an alleged 900,000 fake voters. Police have since responded to demonstrators with force, firing live bullets that have left more than 30 civilians dead — and Frelimo is now threatening to deploy the military. Mozambicans are witnessing a real-time regression in civil liberties and political freedom as they grapple with financial struggles imposed by a regime most concerned with maintaining power.

Burma | International Payment Services Suspended for Citizens

Perfect Monday and Payoneer, two of Burma’s largest international payment providers, announced they would suspend services for citizens in Burma. These payment providers are used extensively by Burmese citizens earning income online and abroad. Their sudden exit, prompted by local banking limitations and regulations imposed by the military junta, will leave many Burmese disconnected from the global economy and their income sources. This will not only impact freelancers and content creators but also risks isolating activists and civil society organizations receiving money abroad. In the face of these restrictions, Bitcoin presents a viable alternative. It enables peer-to-peer payments independent of junta-controlled banks, offering Burmese citizens a way to securely receive payments from abroad, participate in the global economy, and continue earning income absent authoritarian constraints.

Kenya | Requires Declaration of IMEI Upon Entry and Reinstates Finance Law

Beginning in January, Kenyan authorities will require all mobile devices brought into the country to have their International Mobile Equipment Identity (IMEI) numbers registered with the state. This will apply to importers, tourists, and manufacturers upon entering the country. Once linked with individuals’ SIM cards and personal details, IMEIs could grant authorities a more granular ability to track citizens in real-time. While officials claim this measure ensures all devices are “tax compliant” and registered, many are outraged by this blatant infringement of individual privacy. In tandem, Kenya’s Supreme Court has reinstated the country’s 2023 finance law, the predecessor of which was shelved earlier this year after widespread protests and unrest among citizens. The bill’s reinstatement includes higher taxes on citizens and a housing levy, dealing another blow to Kenyans’ financial stability and privacy.

Georgia | Citizens Rally Against Alleged Rigged Election

Georgia’s parliamentary election has sparked protests over alleged vote-rigging and authoritarian interference from Russia. Georgia’s opposition figures have denounced the Georgian Dream party’s narrow 54% win and are demanding a reelection supervised by international bodies. Thousands of citizens have gathered outside the Georgian Parliament, vowing demonstrations until their demands are met. The Georgian Dream party, increasingly seen as pro-Russian, spent 2024 passing numerous controversial laws. This includes a Kremlin-style foreign agents law that grants the regime greater financial control and surveillance over NGOs, nonprofits, and activists, as well as a new law curbing the rights and freedoms of the LGBTQ+ community. With the Georgian Dream party set to extend its decade-long rule, little light is left at the end of the tunnel for civil society and individual freedoms in Georgia.

Russia | Orders Arrest of Journalist for “Undesirable” Media

A Moscow court issued an arrest warrant in absentia for Kirill Martynov, editor-in-chief of Novaya Gazeta Europe, an independent, censorship-free news publication and HRF grantee, on charges of leading an “undesirable organization.” Russian courts ruled that Martynov should be jailed for two months pending a trial. Still, Martynov dismissed the charges as an attempt of repression, vowing that Novaya Gazeta Europe will continue to operate. This is but a small taste of the hardships and risks independent media regularly face when reporting on Russia. Novaya Gazeta already struggles with exile and having its access to traditional financial services curtailed.