HRF’s Weekly Financial Freedom Report #67

Turkey | Lira in Free Fall as Erdogan Arrests Political Rival

Turkey’s lira plunged to a record low after officials arrested Istanbul Mayor Ekrem Imamoglu, President Recep Tayyip Erdogan’s main political rival. Imamoglu’s arrest comes ahead of primary elections and follows the increasing repression of opposition figures in recent months, including the suspension of political opposition accounts on X. Officials also arrested Buğra Gökçe, head of the Istanbul Planning Agency, for publishing data exposing the country’s deepening poverty. The currency’s fallout and political repression have sparked protests in Istanbul despite a four-day ban. The regime is responding with tear gas and rubber bullets. Meanwhile, Turks dissenting online risk joining over a dozen other citizens recently arrested for “provocative” social media posts. Netblocks reports that the Turkish regime imposed restrictions on social media and messaging to quell the uprising of Turks struggling with financial conditions and deepening repression. 

Cuba | Banks “Hijack” Citizen Remittances

Cubans are struggling to access remittances sent from their families abroad. This is because the regime completely controls all incoming foreign currency transfers. When remittances arrive, communist banking authorities force their conversion into collapsing Cuban pesos or “Moneda Libremente Convertible” (MLC), Cuba’s digital currency with limited use. On top of this, Cubans receive pesos in their accounts based on the official Cuban exchange rate, which is far below the informal market rate. This allows the regime to opaquely siphon off much of the remittances’ real value. Even when the money clears, Cubans face long delays or can’t withdraw the cash due to banks’ liquidity shortages. Many Cubans are accusing these banks of “hijacking” their remittances. As inflation, electrical blackouts, and food shortages continue, remittances are more critical than ever for Cuban families. Yet, they’re blocked at every turn by a system designed to impoverish them.

Pakistan | Announces Plans to Regulate Digital Assets

Pakistan announced plans to create a regulatory framework for Bitcoin and digital assets to attract foreign investment and domestic economic activity. It’s a peculiar shift for a regime that regularly suspends the Internet, censors social media, represses opposition, and burdens its people with the highest cost of living in Asia. We suspect the plans indicate efforts to control the industry rather than empower individuals. The military-backed regime is also exploring a Central Bank Digital Currency (CBDC) and tightening controls on VPN use, which are hardly the hallmarks of leadership committed to permissionless financial systems. But perhaps it matters little. Grassroots Bitcoin adoption in Pakistan already ranks among the highest in the world, with an estimated 15 to 20 million users turning to digital assets to preserve their savings, circumvent financial controls, and escape the failures of a collapsing fiat system. HRF supported Bitcoin Pakistan with a grant to help translate resources into Urdu, a language spoken by 60 million people trapped in this repressive scenario.

Russia | Piloting CBDC in Tatarstan to Test Smart Contract Functionality

Russia’s central bank plans to pilot its CBDC, the digital ruble, in Tatarstan to test smart contract functionality. Specifically, the central bank will experiment with conditional spending, using smart contracts to restrict where and what users can spend money on. If these features are implemented, it will empower the Kremlin with micro-controls over Russians’ spending activity. Officials could program funds to expire, restrict purchases to regime-approved goods, or block transactions at certain locations — leaving users with no financial autonomy or privacy. Those who oppose the Russian dictatorship, such as activists, nonprofits, and dissenters, could be debanked with more ease, their assets frozen or confiscated without recourse.

Nicaragua | Government Mandates Public Employees Declare All Assets 

In Nicaragua, dictator Daniel Ortega intensified state financial surveillance by mandating all public servants to disclose information on all personal and family assets. The mandate requires all public employees to declare everything from personal bank accounts, loans, vehicles, and other assets — as well as the assets and accounts of immediate family members. Those who do not comply face the threat of termination. Ironically, despite the law requiring such disclosure, Ortega himself has not declared his assets since 2006. Under the guise of regulatory compliance, this policy is yet another link in the chain tightening state surveillance over Nicaraguan society. Bitcoin adoption continues to grow in this repressed Central American nation.