Bitcoin: A Powerful Weapon Against Dictatorships, Says Human Rights Foundation Exec

For individuals living under authoritarian regimes, the ability to control their own finances can mean the difference between freedom and oppression. At the recent Bitcoin Policy Summit in Washington, D.C., Human Rights Foundation chief strategy officer Alex Gladstein highlighted just how critical Bitcoin has become for those seeking refuge from government control and financial manipulation.

Bitcoin as a Shield Against Dictatorships

Speaking to a room of U.S. political leaders, Alex Gladstein delivered a clear message: “Bitcoin is bad for dictators.” He explained that authoritarian governments rely heavily on controlling their citizens’ financial lives, often through manipulating fiat currency or freezing assets. Bitcoin, when used correctly, disrupts this control mechanism.

Gladstein emphasized that the decentralized nature of Bitcoin makes it significantly harder for oppressive regimes to track individuals’ transactions, especially if users take precautions to protect their privacy. This makes it a powerful tool for activists, journalists, and everyday citizens trying to navigate restrictive financial environments.

Protecting Value: Bitcoin vs. Hyperinflation

One of the most devastating tools used by dictatorships is hyperinflation, which rapidly devalues citizens’ savings held in traditional currency. Gladstein pointed out a key benefit of Bitcoin in this context. “If you’re self-custodian your Bitcoin, governments can’t delete or freeze your stuff, and they certainly can’t hyperinflate you,” he stated.

Bitcoin offers a hedge against this kind of economic instability. By holding Bitcoin in a self-custodied wallet, individuals retain complete control over their assets, making them immune to government seizures or the corrosive effects of rampant inflation orchestrated by unstable economies. This protection has, in many cases, “essentially saved” people living under these harsh conditions, according to Gladstein.

The Human Rights Foundation’s Early Bitcoin Experiment

The Human Rights Foundation recognized Bitcoin’s potential early on. Gladstein recounted their experience during Ukraine’s pro-democracy protests in 2013. As protestors faced frozen bank accounts, the HRF explored alternative ways to get funds to them for their work.

Despite Bitcoin being valued at only around $100 at the time and initial skepticism, they were open to experimenting. The experiment proved successful, demonstrating that Bitcoin could deliver value where traditional financial channels were blocked. This early use case solidified the HRF’s view of Bitcoin as a technology with significant human rights implications.

Why Self-Custody is Key for Freedom

Gladstein repeatedly stressed the importance of self-custody. This means holding your own private keys and controlling your own wallet, rather than leaving your Bitcoin on an exchange or with a third party. For people in authoritarian countries, this isn’t just about financial security; it’s about personal safety and the ability to maintain financial independence from a controlling government.

He explained that while governments can easily target bank accounts or centralized financial services, they face immense difficulty seizing assets held in a self-custodied Bitcoin wallet, provided the user maintains control of their keys and takes appropriate security measures. This ability to bypass state control is what makes Bitcoin uniquely valuable in the fight against authoritarianism.

Summary: Bitcoin as a Tool for Liberty

Alex Gladstein’s remarks at the Bitcoin Policy Summit underscore a vital aspect of Bitcoin’s impact beyond investment. It serves as a powerful tool for Human Rights, offering individuals a way to opt-out of oppressive financial systems controlled by Dictatorships. The ability to hold value resiliently against hyperinflation and the challenge it poses to government tracking and asset freezing, particularly through Self-custody, highlights its role in protecting freedom and providing a lifeline to those most vulnerable to state overreach.