HRF’s Weekly Financial Freedom Report #52

Thailand | Begins Second Phase of CBDC Handout

Thailand has begun the second phase of its 10,000 baht ($290) digital handout (ostensibly a central bank digital currency), targeting 4 million senior citizens and distributing funds via the government’s “Tang Rath” app. This follows an initial handout of digital currency to 50 million Thais as part of an economic stimulus plan. Critics, however, argue the handout is more accurately a means to entrench financial control and sway votes in the upcoming election. The Thai government limited the initial handout to local spending, specific items, and a six-month expiration. The second phase will likely impose similar restrictions, including requiring registration and facial recognition in the Tang Rath app. According to Thailand’s prime minister, “the digital wallet system would form a digital infrastructure for Thailand by creating a digital ID for citizens to link to government agencies” — a disconcerting reminder of how CBDCs can amplify state control over individual financial activity under the guise of social support.

Brazil | Proposes Ban on Transferring Stablecoins to Self-Custody

The Central Bank of Brazil (BCB) proposed regulations prohibiting digital asset exchanges from allowing users to withdraw stablecoins (digital currency pegged to fiat currency) to self-custody. The restriction aligns with a bill passed in December 2022 that grants the BCB “authority” over the digital asset industry. While presented as a safeguard for international capital flows, it is more likely a front to diminish the financial autonomy offered by digital assets. If passed, it will limit individuals’ movement of funds and set a chilling precedent for self-custody in a country where millions of Brazilians transact with digital assets on a monthly basis. As Brazilians face increasing economic instability and diminishing financial freedom, this regulation traps them further in a collapsing Brazilian real (BRL).

China | Prepares for Sanctions While Eyeing Taiwan

China is actively studying sanctions imposed on Russia to prepare for potential repercussions if it invades Taiwan. Chinese officials visited Moscow’s central bank, finance ministry, and other key agencies to analyze how Russia navigated economic restrictions. This proactive approach speaks to fears China may have over its $3.3 trillion in foreign reserves and overseas bank assets, which would face significant restrictions under Western sanctions. In an effort to mitigate these risks, China is working to diversify away from dollar-denominated assets and reduce reliance on US Treasury bonds, which underpin the global financial system. This comes amid escalating tensions with the US after Washington approved an arms shipment to Taiwan, prompting Beijing to vow “resolute countermeasures.”

Nigeria | Journalist Detained for Exposing Regime Corruption

The Nigerian Army’s 6 Division in Port Harcourt detained prominent investigative journalist Fisayo Soyombo, sparking national outrage over press freedom in Nigeria. Soyombo, known for exposing regime corruption, recently unveiled alleged smuggling operations involving the Nigerian Customs Service (NCS). The Foundation for Investigative Journalism, founded by Soyombo himself, demands his immediate release and condemns the actions as an attack on journalism. Under President Bola Tinubu, the government has intensified its dismantling of independent media, silencing critics and restricting tools and pathways that promote financial autonomy. This systematic repression denies citizens the ability to challenge inequality and secure a freer future.

Morocco | Drafts Law on Digital Assets and CBDC

Morocco is moving toward allowing digital assets and a central bank digital currency (CBDC). Central Bank Governor Abdellatif Jouahri shared that a draft law is currently in the adoption process that would reverse a ban on digital assets from 2017. The interest in a CBDC is nothing short of concerning in a country facing widespread repression and economic challenges. Citizens have already taken to the streets to protest rising costs, unemployment, and a lack of basic services. Centralized and programmable money provides the Moroccan government with newfound power to control individual financial activity and only serves to worsen these prevalent issues. Bitcoin adoption remains high under a regime that continues to fabricate economic hardship for its people.