Bitcoin is far more than an online payment service. PayPal, Venmo or other online payment systems are available. Bitcoin and private cryptocurrency are Cash For the Internet
You can pay anyone with cash in paper form. There’s no need for a bank account. The account doesn’t really care about who or what is being purchased. It is an instrument that bears. It’s a bearer instrument. You now have the dollar, and I no longer do. The transaction is instantaneous and nobody can get in the way. No one can be trusted to get the dollars to you. It’s also private. The transaction has never been recorded. The transaction is so secretive that it’s a joke among the crypto community to say: If money were invented today, would it be legal?
Paper cash, despite its advantages, is worthless online. In order to send money over the internet we have to use a network of intermediaries. PayPal is a service that allows users to transfer money from their bank accounts to other PayPal accounts.
The companies involved record each stage of the process in great detail and report it to the government. The companies must be willing to carry out our transactions, and this is not something we can take for granted.
Venmo has become a popular alternative for people who prefer the ease of using tools such as Venmo. Even transactions like coffee purchases that used to be done face-toface with paper money are now recorded, reported, executed and recorded according to the rules of corporations and governments.
Commerce now passes through relatively few intermediaries, which gives authoritarians an easy way to exert pressure on the populace to limit what they can do. The risk may seem distant to us who live in stable democracies. But the truth is, states are responsible for financial systems. And not all of them uphold free speech and association.
Bitcoin and other crypto currencies offer a possible solution. These cryptocurrencies are more like money. The bearer instrument can be privately used, without the need for a account. It’s cash on the web. They also break up the financial intermediaries’ control over us.
Of course, there are valid reasons for governments to want to restrict certain transactions and monitor money flow. We have seen governments increasingly succumb to the lure of weaponizing their control over intermediaries in order to suppress political dissension. It is this flaw that makes regulation by means of intermediary financial services so flawed.
After protests in Belarus erupted over an rigged elections, the government quickly cracked down. This included financial sanctions. The government imposed heavy fines on protesters and pressured employers to dismiss dissenting workers.
The non-profit BYSOL in Belgium responded by providing financial assistance to protestors. Due to the fact that the protests were illegal, financial intermediaries complied with law and seize funds from protesters. Cash was confiscated and electronic transfers monitored. BYSOL used Bitcoin to allow protesters to make smaller swaps between locals while avoiding the net of financial supervision mandated by the state.
The Russian government branded Putin’s opponent as a terrorist group and made donations against the law. In any country, the financial intermediaries are bound by law to follow it. The intermediaries were used as a weapon to control political activities. Alexei Navalny’s Anti Corruption Foundation relied on cryptocurrency to stay afloat, boosted by privacy features provided by Wasabi Wallet. This new tool allows Russians to continue funding their opposition of Putin.
Myanmar’s Junta implemented strict Know Your Customer regulations and clamped down on cash. All economic activity was forced into a surveillance system, which is susceptible to arbitrarily freezing accounts. Iran’s new rule would deduct money from women’s bank accounts who do not comply with the Hijab law.
This issue can arise even in the United States. This issue could arise in the U.S. Roe v. Wade Endangers access to abortion Payment providers could be forced to conform to the law, or to give evidence to authorities, if funding of abortion services is made illegal. Payments are made by many abortion pill sites using services such as PayPal and Stripe. In the event that these services were to be cut, cryptocurrencies could provide a viable alternative. Access to all controversial issues is also threatened by similar threats. Although it is hard to control the people, controlling the intermediaries may be easier.
It’s important to look at another problem in the financial system that is intermediated, beyond just direct legal control. Private companies have different values and concerns. A number of these companies are listed on the stock exchange. It makes them vulnerable to public opinion.
PayPal is a well-known company, but why would it take the risk to process payments for industries some people find unsavory even though they may be legal? It’s not uncommon for adult creators, marijuana businesses or political outspoken voices to be kicked off of platforms. It’s easier to kick them out and focus on the core of their business. Even if all companies make the same calculations, their businesses would be killed.
Cash, whether it is paper or cryptocurrency, remains a neutral system that’s immune to the will of both the authoritarians and the mob. The internet is a cash machine. There is no need for an account. You only require a computer, and access to the internet. You can’t tell what they think about you. You’re not being watched. You can’t be stopped from transacting with these companies. These are vital tools to protect our freedom in the digital age. They also act as a check against authoritarianism, which is made easier with a centrally-intermediated internet.
Neeraj Agrawal is an invited guest. Opinions are solely theirs and may not reflect the views of BTC Inc.
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Source: bitcoinmagazine.com
